TAX COURT OPINION

Case: George Maciel
Docket Number: 7802-00
Judge: Ruwe
Opinion Type: memo
Filed: 02/04/2004
Pages: 87

T.C. Memo. 2004-28 UNITED STATES TAX COURT GEORGE MACIEL, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 7802-00. Filed February 4, 2004. David M. Kirsch, for petitioner. G. Michelle Ferreira and Charlotte A. Mitchell, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION RUWE, Judge: Respondent determined deficiencies in petitioner's Federal income taxes and penalties pursuant to section 66631 as follows: 1Unless otherwise indicated, all section references are to (continued...) - 2 - Year Deficiency Penalty Sec. 6663 19901 1991 1992 $192,954 71,337 56,075 $144,715.50 53,502.75 42,056.25 1The notice of deficiency for 1990 states the amounts listed above. In his answer, respondent decreased the deficiency amount and fraud penalty for 1990 to $172,655 and $129,491.25, respectively. After concessions,2 the issues to be decided for 1990, 1991, and 1992, are as follows: (1) Whether, and to what extent, petitioner received and failed to report income; (2) whether petitioner is entitled to various adjustments to reconstructed income not claimed on his returns; 1(...continued) the Internal Revenue Code in effect for the years at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. 2Respondent concedes that for 1990, petitioner is entitled to deduct $64,679 in expenses associated with the Tri-City Truck Parts partnership, and petitioner concedes that his distributive share of income from Tri-City Truck Parts is $41,105. Respondent concedes that the sec. 6663 penalty for 1990 does not apply to the tax attributable to the Tri-City Truck Parts and Equipment (Tri-City) adjustment of $41,105. Additionally, respondent concedes petitioner's entitlement to a partnership loss deduction for the BAMA Equipment partnership of $26,046 for 1991 and a loss deduction of $8,777 for 1992. Similarly, petitioner agrees that he is not entitled to a casualty loss deduction of $25,020 on his Schedule A, Itemized Deductions, for 1992. Respondent agrees that the fraud penalty does not apply to tax attributable to this adjustment. At trial, the parties stipulated that petitioner's share of the rental income from PSB Trucking with regard to the Boscell Road property for 1990 is $46,200, rather than the amount petitioner reported, $50,400. On brief, respondent concedes that petitioner is entitled to a capital loss of $3,000 for 1992, with respect to the BAMA Equipment partnership. - 3 - (3) whether petitioner intentionally failed to report income in an effort to fraudulently evade the payment of taxes; and (4) whether respondent's assessment of deficiencies and penalties is barred by the period of limitations. FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulation of facts, supplemental stipulations of facts, and the attached exhibits are incorporated herein by this reference. Petitioner resided in Santa Clara, California, at the time he filed the petition. A. General Background Petitioner has been involved in the trucking business for more than 20 years. During the years at issue, petitioner was the sole shareholder, president, and chief executive officer of Alviso Rock, Inc. (Alviso), a corporation organized and existing under the laws of the State of California. Alviso was a trucking and hauling business located in Newark, California. Additionally, during the aforesaid period, petitioner was the general manager of George Maciel Trucking, Inc. (GMT), a wholly owned subsidiary of Alviso. Alviso and GMT were C corporations that reported their consolidated income on Forms 1120, U.S. Corporation Income Tax Return, for the taxable years ending November 20, 1989, 1990, 1991, 1992, and 1993. In addition to Alviso and GMT, petitioner engaged in the - 4 - following noncorporate business activities. B. The BAMA Partnership In 1989, petitioner entered into a partnership with Michael D. Mitchem named BAMA Equipment (BAMA). BAMA was engaged in the business of selling new and used trucks. Petitioner owned a 50- percent interest in BAMA. During the years in issue, BAMA wrote numerous checks to petitioner and/or his related corporation(s), which he deposited into noncorporate bank accounts over which he had signatory authority. BAMA paid petitioner rent for the use of one of his real properties, which he deposited into the aforesaid bank accounts. BAMA was also a sponsor of petitioner's racing business.3 On his 1991 and 1992 returns, petitioner claimed deductions for passthrough losses from BAMA of $56,786 and $8,777, respectively. For those years, petitioner's capital accounts in BAMA were negative $26,046 and $34,823, respectively. As previously stated, respondent concedes loss deductionss for 1991 and 1992 of $26,046 and $8,777, respectively. Additionally, respondent concedes petitioner's capital loss deduction of $3,000 for 1992. BAMA dissolved in 1992. 3Petitioner's racing business is discussed in detail below. C. Tri-City Truck Parts and Newark Wreckers - 5 - In 1987, petitioner and Peter Viviano (Mr. Viviano) formed M&V Investments of which each owned a 50-percent interest.4 On April 14, 1987, M&V Investments purchased a company named Tri- City Truck Parts and Equipment (Tri-City) for $350,000. The seller, Raymound Giarrusso (Mr. Giarrusso), took back a $200,000 note from petitioner and Mr. Viviano with the balance of the purchase price, $150,000, being paid in cash. At the same time, M&V Investments purchased Newark Wreckers, Inc. (Newark Wreckers), from Mr. Giarrusso for $50,000, for which each partner paid $25,000. Accordingly, for the two purchases, each partner contributed $100,000 and was personally liable under the $200,000 note payable to Mr. Giarrusso. For each of the taxable years 1987 through 1990, Newark Wreckers filed Forms 1120. Petitioner was a 50-percent shareholder and president of Newark Wreckers from 1987 through 1989. Likewise, Tri-City timely filed Forms 1065, U.S. Partnership Return of Income, for each of the years 1987 through 1990. Petitioner was a 50-percent income and loss partner of Tri-City. 4The parties characterize petitioner's relationship with Mr. Viviano as a "limited partnership". However, there is no indication that the parties entered into a formal limited partnership or that partnership returns were filed for the years at issue. - 6 - On April 27, 1990, petitioner sold his 50-percent interest in M&V Investments (Tri-City and Newark Wreckers) to Mr. Viviano for $200,000. The $200,000 purchase price was paid in the form of three cashier's checks for $100,000, $75,000,and $25,000, which were initially made payable to Mr. Viviano but were subsequently endorsed to petitioner. Pursuant to the sales agreement, petitioner relinquished all claims he had in Tri-City and Newark Wreckers, and he was discharged from his obligation to pay on the note to Mr. Giarrusso.5 Petitioner did not report this sale on his 1990 return.6 5The Escrow Statement, Bulk Transfer Escrow Instructions, and Security Agreement list petitioner's and Mr. Viviano's indebtedness to Mr. Giarrusso as $200,000. The 1990 Schedule L, Balance Sheet, for Tri-City lists the indebtedness as $202,000. Respondent describes petitioner's indebtedness as being $101,000. We assume respondent used the $101,000 as opposed to the $100,000 on the basis of Tri-City's 1990 Schedule L. We further assume a scrivener's error on the part of Tri-City's tax return preparer for 1990 and assign no substantive significance to this discrepancy. 6Petitioner did, however, attach a statement to his 1990 income tax return which states: THE ABOVE NAMED TAXPAYER WAS INVOLVED IN A PARTNERSHIP FOR PART OF THE 1990 TAX YEAR. THE PARTNERSHIP WAS TRI-CITY TRUCK PARTS. THE TAXPAYER DID NOT RECEIVE HIS SCHEDULE K-1 (SHARE OF PARTNERSHIP INCOME & DEDUCTIONS) FOR 1990. SEVERAL ATTEMPTS WERE MADE TO REACH THE DESIGNATED PARTNER OF TRI-CITY TRUCK PARTS (PETER VIVIANO). ALL ATTEMPTS WERE UNSECCESSFUL [sic]. AS A RESULT THE ABOVE NAMED TAXPAYER WAS UNABLE TO REPORT HIS SHARE OF THE PARTNERSHIP'S ACTIVITY FOR THE 1990 TAX YEAR. (continued...) - 7 - During 1987 through 1990, Mr. Viviano and petitioner made several short-term loans/advances to Tri-City and Newark Wreckers. There were no formal loan agreements created to evidence these transactions. The parties followed the practice of immediately repaying themselves when the entities were able, usually within 3 weeks to 3 months. Petitioner alleges that he has never been repaid at least $56,450 in loans and advances, and he now contends that this amount offsets any gain he realized upon the sale of M&V Investments to Mr. Viviano. D. Newark Truck and Body Shop With part of the funds secured from Mr. Viviano, in May 1990, petitioner purchased land and a vacant building located at 7373 Wells Avenue, in Newark, California, from Mr. Guarrusso for $200,000. Upon receipt of the three cashier's checks from Mr. Viviano totaling $200,000, petitioner purchased two cashier's checks made payable to himself, one for $175,000 and the other for $25,000. On May 16, 1990, petitioner took the $175,000 cashier's check made payable to himself and purchased two more cashier's checks. One of the cashier's checks was for 6(...continued) The date listed next to petitioner's signature on his 1990 income tax return is Aug. 14, 1991. The date listed on TriCity's 1990 tax return is Dec. 21, 1991. There is no indication in the record that petitioner filed an amended return for 1990. There is no indication that petitioner has ever reported this sale of his interest. Petitioner testified that he believed that he had reported the sale. - 8 - $127,504.82 and made payable to Fidelity National Title, apparently the escrow agent for the purchase of 7373 Wells Avenue, and a second cashier's check was for $47,495.18 and made payable to petitioner. On June 11, 1990, petitioner deposited the second cashier's check for $47,495.18 and the $25,000 cashier's check purchased with the funds received from Mr. Viviano into Bank of Milpitas account No. 512-001-300466. During the years at issue, petitioner conducted an unincorporated business from the 7373 Wells Avenue location named Newark Truck and Body (Newark T&B).7 Newark T&B was engaged in the business of truck repair for petitioner's related businesses and for unrelated third parties. Petitioner was the sole owner of Newark T&B. Newark T&B had its own invoices and business cards. Newark T&B performed truck repairs work for which it received remuneration. Petitioner maintained a bank account at the Bank of Milpitas, account No. 512-001-300466, in the name of "George A. Maciel c/o Newark Truck & Body". Petitioner garnered significant funds from the Newark T&B activity.8 Petitioner did not report any of the moneys that Newark T&B received for repair services on his 1990, 1991, or 7Petitioner initially characterized Newark T&B as an "activity". At trial, petitioner admitted this "activity" was a business. 8On brief, petitioner concedes that total deposits attributable to Newark T&B for the 3-year period were $123,953.77. - 9 - 1992 returns.9 Petitioner's accountants were not aware of Newark T&B until after the Internal Revenue Service (IRS) commenced its audit and investigation. Alviso/GMT's bookkeeper was also unaware of the Newark T&B business operations. E. Petitioner's Racing Business During the years at issue, petitioner maintained an unincorporated automobile racing business under the name "Alviso Rock/HK Racing".10 Petitioner was the sole owner of this business. During the years at issue, petitioner maintained a bank account at the Bank of Milpitas, account No. 512-001-102605, in the name "Alviso Rock/HK Racing". During the years indicated, petitioner received the following amounts of racing income, which he deposited into the aforementioned bank account: Description 1990 1991 1992 Deposits Less: nontaxables1 Net racing income $16,811.57 (4,125.34) 12,686.23 $14,397 (4,334) 10,063 $31,493.96 (20,144.00) 11,349.96 1 The parties stipulated the above nontaxable deposits. The funds were received from, inter alia, sponsors11 and/or winnings. 9Petitioner argues that unclaimed expense deductions and advances/loans substantially offset income that Newark T&B earned. 10Initially, petitioner characterized this endeavor as an "operation", but he admitted at trial that this "operation" was a business. 11Petitioner's related businesses, Alviso, GMT, and BAMA, were among the sponsors. - 10 - Petitioner did not report any of the above-listed deposited funds on his 1990, 1991, or 1992 returns. Furthermore, petitioner's accountants were not aware of this business activity until after the IRS commenced its audit and investigation.12 F. Rental Property Income During 1990, 1991, and 1992, petitioner owned and held numerous real properties for investment and lease. One such property was located at 41550 Boscell Road, Fremont, California (the Boscell property). In 1990, petitioner owned 50 percent of the Boscell property with Thomas Viviano. In May 1991, Thomas Viviano sold his 50-percent interest in the Boscell property to petitioner. During the years at issue, the Boscell property was leased to two tenants. One tenant, PSB Trucking, rented space at the Boscell property for $8,400 per month. Petitioner reported rental income attributable to PSB Trucking of $50,400,13 $79,800, and $100,800 for 1990, 1991, and 1992, respectively. 12Petitioner argues that if unclaimed expense deductions are considered, his racing business lost money. 13At trial, the parties stipulated that petitioner's share of the rental income from PSB Trucking with regard to the Boscell Road property for 1990 is $46,200, rather than the amount petitioner reported, $50,400. Respondent concedes that petitioner reported his proportionate share of the rental income attributable to PSB Trucking for 1991 and 1992. - 11 - A portion of the Boscell property was also rented to P.J. Vierra & Sons (P.J. Vierra) for $500 per month. Petitioner did not report any of the rental income received from P.J. Vierra.14 In addition to the Boscell property, petitioner held numerous other real properties for rent. One such property was located at 4842 Cabrillo Point, Byron, California. This property was leased to Daniel Parquette. Petitioner received and deposited rent payments from Daniel Parquette. Other properties that petitioner owned included those located at and described as: 1300 State Street, 1573 State Street, 1252 State Street, 1243 State Street, Basset Lot (Santa Clara), 1594 Wabash Street, 1598 Wabash Street, 7373 Wells Avenue, 37243 Filbert Street (Lot), and Liberty Avenue. In addition to the Boscell and 4842 Cabrillo Point properties, during 1990, 1991, and 1992, petitioner received and deposited into bank accounts over which he had signatory authority rental income from the following individuals and/or entities: Charles and Rose Lamb, Piazza Mobile Sweeping, BAMA Equipment, Louis and Marion Bewley, James Morrow, Stockton Semi Trailer, Daniel Parquette, Daniel Estacio, Sines Trucking Co., Linda Venture, Neil and Betsy Holets, Margaret and Kevin Deemer, P.J. Vierra & Sons, PSB Trucking, J.S.J. Pipeline, Michel K. Pipes, Dad's Enterprises, Linda Venture, Margret or Kevin 14At trial, petitioner could not explain why the rental income received from P.J. Vierra was not reported. - 12 - Deemer, and Ricky and Ana Flores. Petitioner claimed deductions on his Schedules E, Supplemental Income and Loss, for many of these real properties. G. Petitioner's Bank Deposits During 1990, 1991, and 1992, petitioner deposited significant sums of money into seven noncorporate bank accounts over which he had signatory authority.15 The bank accounts were maintained in the following names: (1) Bank of Milpitas, account No. 512-001-200593 "George A. Maciel;" (2) Bank of Milpitas, account No. 512-001-300466 "George A. Maciel c/o Newark Truck & Body;" (3) Bank of Milpitas, account No. 512-001-303171 "GM Investments;" (4) Bank of Milpitas, account No. 512-001-102605 "Alviso Rock/HK Racing;" (5) Wells Fargo Bank, account No. 0108- 363904 "George Maciel" and "Peter Viviano;" (6) Wells Fargo Bank, account No. 0500-325774 "George A. Maciel;" and (7) Wells Fargo Bank, account No. 6500-059183 "George Maciel." Generally, these deposits fall into one of four categories. The first category is checks made payable to either Alviso or GMT, yet endorsed and deposited into noncorporate bank accounts over which petitioner had signatory authority. An example is check No. 35286, made payable to Alviso for $7,500, the payor of which is Sutter Insurance Co. and check No. 426 for $13,000 made payable to GMT, 15The record reflects deposits of more than $1.8 million for the 3-year period; that is, $715,484.75, $412,514.76, and $757,186.94, for 1990, 1991, and 1992, respectively. - 13 - the payor of which is Daniel Hernandez. Both of these checks are made payable to Alviso or GMT yet deposited into Bank of Milpitas account No. 512-001-300466. The second category represents workmen's compensation insurance refund checks made payable to Alviso or GMT and deposited into noncorporate bank accounts over which petitioner had signatory authority. For example, on or about July 31, 1992, Republic Indemnity Co., refunded Alviso $57,472, which petitioner deposited into Bank of Milpitas account No. 512-001-300466. The third category is payments made to petitioner from his related entities. An example of such a payment is check No. 4153 for $2,476.06 made payable to petitioner from GMT. Lastly, there are substantial sums of cash and their equivalent deposited into noncorporate bank accounts over which petitioner had signatory authority. For example, on June 19, 1990, petitioner deposited $15,000 in traveler's checks into Bank of Milpitas account No. 512-001-300466. Likewise, on July 18, 24, and 26, 1990, petitioner deposited cash into this same bank account in the respective amounts of $9,600, $9,700, and $9,800. After depositing some of the aforementioned moneys, petitioner wrote checks to Alviso or GMT noting on the checks that these payments were loans. For example, on or about November 19, 1990, Transamerica Insurance Group issued a check payable to Alviso for $67,256. On December 13, 1990, petitioner - 14 - deposited this check into Bank of Milpitas, account No. 512-001- 300466.16 On that same day, petitioner wrote a check from this account to GMT for $50,000 and indicated on the memo line "loan to GMT". The corporation's bookkeeper made a handwritten notation, which reads "Art [the accountant]- George put this money out of pocket - don't credit as income. We're going to pay our line of credit monthly out of this account, Yvonne" on GMT's bank statement for the account into which the $50,000 check was deposited Similarly, on or about June 28, 1991, Republic Indemnity Co. issued GMT a check for $42,887. On July 9, 1991, petitioner deposited this check into Bank of Milpitas, account No. 512-001- 300466. On that same day, petitioner wrote two checks from this bank account, one for $30,000 to GMT and one for $10,000 to Alviso. Petitioner wrote "loan" on the memo line of both checks. This same treatment occurred with a $57,472 check to Alviso received from Republic Indemnity Co. Petitioner also deposited this check into Bank of Milpitas account No. 512-001-300466. On or about June 4, 1992, petitioner wrote a check to GMT for $45,000, noting "Loan for Ins." on the memo line.17 16Petitioner testified that $17,000 of this money was used to purchase truck parts from a third party, Peterbilt. The truck parts were purchased in the name of Newark T&B. 17Petitioner testified that he was not sure whether by depositing the Alviso check he was reimbursing himself for a loan (continued...) - 15 - After making the above-described deposits, Alviso and GMT booked some of these "loans" as indebtedness owed to petitioner. The general ledger for Alviso/GMT for the fiscal year ending November 1992, shows the note payable balance to petitioner as $105,000, which consists of three of the four checks petitioner wrote to the corporations and designated as "loans". The $105,000 note payable balance consists of the following checks written on Bank of Milpitas, account No. 512-001-300466: Date of check Amount Payee Check No. 12/13/90 7/9/91 6/4/92 $50,000 10,000 45,000 GMT Alviso GMT Check 159 195 Petitioner testified that the designation "loan" for the $50,000 check was placed on the check to dissuade his sister from filing a lawsuit against him questioning his ownership rights to the businesses. Petitioner testified that he artificially designated checks as loans to his corporations as a "smoke screen" to his sister. At trial, petitioner claimed he did not intend for many of his checks to be designated as loans for which he was to be repaid. 17(...continued) to the corporation for the insurance. H. Bank Accounts and Reported Income - 16 - During the years at issue, funds were deposited into noncorporate bank accounts over which petitioner had signatory authority as follows:18 1. Bank of Milpitas, account No. 512-001-200593,19 in the name of "George A. Maciel": Year 1990 1991 1992 Deposits $105,340.39 106,995.75 94,272.80 2. Bank of Milpitas, account No. 512-001-300466,20 in the name of "George A. Maciel c/o Newark Truck & Body": Year 1990 1991 1992 Deposits $516,524.02 241,243.77 509,494.83 3. Bank of Milpitas, account No. 512-001-303171,21 in the name of "GM Investments": 18Attached hereto and incorporated herein are appendices A, B, C, D, and E, which detail the described deposits as agreed by the parties. Additionally, attached hereto and incorporated herein as appendix F is a stipulated schedule listing nontaxable deposit items. 19Appendix A details the deposits made into this bank account for the years at issue. 20Appendix B details the deposits made into this bank account for the years at issue. 21Appendix C details the deposits made into this bank account for the years at issue. Year 1991 1992 - 17 - Deposits $49,811.07 121,885.27 4. Bank of Milpitas, account No. 512-001-102605,22 in the name of "Alviso Rock/HK Racing": Year 1990 1991 1992 Deposits $16,811.57 14,397.00 31,493.96 5. Wells Fargo Bank, account No. 0108-363904,23 in the names of "George Maciel" and "Peter Viviano": Year 1990 Deposits $76,463.54 6. Wells Fargo Bank, account No. 0500-325774, in the name of "George A. Maciel": Year 1990 Deposits $4.72 7. Wells Fargo Bank, account No. 6500-059183, in the name of "George Maciel": Year 1990 1991 1992 Deposits $340.51 67.17 40.08 22Appendix D details the deposits made into this bank account for the years at issue. 23Appendix E details the deposits made into this bank account for the year at issue. - 18 - The parties stipulated the above sums for the years at issue. Additionally, the parties agreed that the above-described deposits included $328,286.83, $74,180.81, and $407,639.68 of nontaxable items for 1990, 1991, and 1992, respectively.24 Thus, the total deposits and agreed nontaxable deposits25 for the years at issue were: 1990 1991 1992 Total deposits Nontaxable deposits (328,286.83) Net $715,484.75 387,197.92 $412,514.76 (74,180.81) 338,333.95 $757,186.94 (407,639.68) 349,547.26 The following chart illustrates the total amount and categories of moneys that petitioner received and reported on his returns: 1990 1991 1992 $59,642.28 16,872.00 Net wages1 Taxable interest Taxable refunds of state and local income taxes 3,985.00 Gross rents, royalties, etc. Other income2 Total 93,423.00 6,000.00 179,922.28 $59,590.17 16,131.00 $54,653.28 6,595.00 1,499.00 -- 125,683.00 -- 202,903.17 140,600.00 -- 201,848.28 1 "Net wages" was calculated by reducing gross wages by Federal income tax withheld, Social Security tax withheld, and State and local income taxes withheld. 2 This amount was reported in Statement 1 as "Cabrillo Point" on petitioner's 1990 return. 24See supra note 18. 25In the stipulation, petitioner reserved the right to present additional evidence regarding nontaxable items deposited. - 19 - Petitioner also wrote checks made payable to "cash" from his noncorporate bank accounts over which he had signatory authority. For example, in 1990, petitioner wrote the following checks to cash from Bank of Milpitas, account No. 512-001-300466: Date of Check 3/20/90 4/17/90 4/27/90 4/27/90 Total Check No. Amount 9,741.50 $9,645.00 109 112 118 8,697.50 117 9,750.00 37,834.00 At trial, petitioner could not recall the purpose for, or use of, these funds.26 I. Petitioner Pled Guilty to Criminal Charges On September 23, 1998, petitioner was charged with two counts of knowingly filing false Federal income tax returns for 1991 and 1992 in violation of 26 U.S.C. sec. 7206(1) (2000).27 On January 13, 1999, petitioner entered a guilty plea to the aforesaid charges and was sentenced to, inter alia, 36 months of probation. In pleading guilty, petitioner admitted that he 26Petitioner included copies of the checks as part of his exhibits. Since petitioner cannot recall for what these amounts were expended, he is not now claiming them as adjustments to reconstructed income. 27In United States of Am. v. George Maciel, case No. 98- 20085-JF, U.S. District Court for the Northern District of California, petitioner was charged with willfully making a return he did not believe to be true and accurate; he willfully omitted the correct amount of income from his return, understating his income by $78,454 and $75,587 for 1991 and 1992, respectively. The information alleged he understated his income tax liability by $19,299 and $10,377 for 1991 and 1992, respectively. - 20 - "willfully" made and signed his 1991 and 1992 individual tax returns that he "did not believe" [were] "true and correct" [and] "willfully omitted true and correct information concerning" [his] "income, knowing then that" he "had additional reportable income" of $78,454 and $75,587 for 1991, and 1992, and that there was additional tax due and owing on this additional income of $19,299 and $10,377 for 1991 and 1992, respectively. J. Significant Events in Petitioner's Life Before and during the years at issue, petitioner encountered a series of stressful events. These events included the following: Two of his friends/employees died; his and his girlfriend's child was stillborn; his friend and financial adviser broke his neck and became a quadriplegic; his former brother-in-law died in a motorhome fire outside of petitioner's office; he was sued in connection with an accident between one of petitioner's trucks and a police officer; and his mother was diagnosed with lung cancer. OPINION Respondent determined that during 1990, 1991, and 1992, petitioner engaged in a scheme to divert income from his business activities and thereby failed to report substantial earnings on his income tax returns in order to fraudulently evade the payment of tax. Petitioner does not dispute that he underreported income. Petitioner's argument centers on his state of mind and - 21 - that "any inaccuracies in his tax returns were caused by extraordinary stresses and distractions he experienced, not an intent to evade taxes." For the reasons detailed below, we uphold respondent's deficiency determinations, with some modifications, and find that petitioner fraudulently intended to evade the payment of his tax liabilities for 1990, 1991, and 1992. The first question we address is whether there is a deficiency. The Commissioner's determination of tax liability is presumptively correct, and the taxpayer bears the burden of showing that the determination is erroneous.28 Zack v. Commissioner, 692 F.2d 28 (6th Cir. 1982), affg. T.C. Memo. 1981- 700; see DiLeo v. Commissioner, 96 T.C. 858, 871 (1991), affd. 959 F.2d 16 (2d Cir. 1992); Nicholas v. Commissioner, 70 T.C. 1057, 1064 (1978).29 A. The Amount of the Deficiency 1. Unreported Income Section 61(a) defines gross income as "all income from whatever source derived". Every person liable for any tax must 28"This presumption of accuracy does not change merely because the case requires a subsidiary inquiry into the question of fraud." Zack v. Commissioner, 692 F.2d 28, 29 (6th Cir. 1982), affg. T.C. Memo. 1981-700. 29Petitioner disputes respondent's calculations of how much income he failed to report. He argues also that to the extent he omitted income, he is entitled to decrease his taxable income by the amount of unclaimed deductions and adjustments. - 22 - maintain books and records sufficient to establish the amount of his gross income. Sec. 6001; DiLeo v. Commissioner, supra at 867. The Secretary is authorized to reconstruct income in accordance with any reasonable method that accurately reflects actual income. Secs. 446(b), 6001; Petzoldt v. Commissioner, 92 T.C. 661, 687 (1989); Meneguzzo v. Commissioner, 43 T.C. 824, 831 (1965). The reconstruction of a taxpayer's income need only be reasonable in light of all surrounding facts and circumstances. Giddio v. Commissioner, 54 T.C. 1530, 1533 (1970); Schroeder v. Commissioner, 40 T.C. 30, 33 (1963). To reconstruct petitioner's gross income, respondent utilized both the specific items and bank deposits methods. The specific items and bank deposits methods of income reconstruction have long been sanctioned by the courts. Clayton v. Commissioner, 102 T.C. 632, 645 (1994); Estate of Mason v. Commissioner, 64 T.C. 651, 656 (1975), affd. 566 F.2d 2 (6th Cir. 1977). "If the taxpayer feels that the Government's method of computation is unfair or inaccurate, the burden is on him to show such unfairness or inaccuracy." DiLeo v. Commissioner, supra at 871. (a) Specific Items of Unreported Income From Petitioner's Sale of Tri-City Truck Parts and Newark Wreckers Petitioner held his interests in Tri-City and Newark Wreckers under the name M&V Investments. As found above, - 23 - petitioner sold his interest in M&V Investments on April 27, 1990. Respondent calculated petitioner's income from the sale of M&V Investments for 1990, using the specific items method of income reconstruction. To the extent that petitioner deposited proceeds from this sale to bank accounts over which he had signatory authority, those deposits were treated as nontaxable in respondent's bank deposits analysis. Respondent calculated petitioner's basis and gain on the sale of the interest as follows: Calculation of Adjusted Basis Newark Wreckers Original cost $25,000 Addl. Capital Contributed or Withdrawn 1987 1988 1989 1990 -- -- -- -- Petitioner's Share of Pship. Income/(Loss) Tri-City $75,000 110,231 5,000 (5,000) (2,667) 1987 1988 1989 1990 1990 (stipulation)1 -- -- -- -- (22,603) (78,505) (115,377) (5,881) 41,105 Subtotal 25,000 1,303 Petitioner's share of pship. debt 2101,000 Adjusted basis 25,000 102,303 Total combined basis 127,303 Description of Item Cash from Viviano Relief from pship. debt Total amount realized Less total basis Amount recognized Calculation of Amount Recognized on Sale $200,000 101,000 301,000 (127,303) 173,697 - 24 - 1On brief, the parties explained that respondent audited and We agree that this inclusion of income increased petitioner's initially disallowed all expense deductions for Tri-City's 1990 taxable year. The parties stipulated that petitioner's income inclusion from Tri-City for 1990 was $41,105. basis. Subch. K of the Code governs basis in a partnership. Sec. 705 details how to calculate basis. Specifically, a partner's basis in his partnership interest is increased by, inter alia, the amount of his distributive share of taxable income. Sec. 705. Thus, to the extent petitioner recognized additional income as a result of the adjustment to Tri-City, he is also entitled to an upward adjustment of his basis in Tri-City. Respondent's and petitioner's calculations correctly incorporate the increase in basis due to the additional income inclusion. 2See supra note 5. The inclusion of the "extra" $1,000 is irrelevant, since it increases the basis and likewise increases the amount realized. One difference between petitioner's and respondent's calculation of unreported income from this sale is whether the inclusion of petitioner's relief from partnership debt under the sales agreement should be included as part of the sale proceeds. We believe that respondent, in contrast to petitioner, correctly includes, as an amount realized, that portion of the liability of which petitioner is relieved by virtue of the sales agreement.30 "If a partnership interest is sold or exchanged, the reduction in the transferor partner's share of partnership liabilities is treated as an amount realized under section 1001 and the regulations thereunder." Secs. 1.752-1(h), 1.1001-2(a), Income 30Petitioner argues that respondent incorrectly included petitioner's relief from indebtedness as an amount realized in the sale. It is clear that the amount of the indebtedness from which petitioner is relieved is included as an amount realized in the sale transaction, and likewise, petitioner's basis in partnership is increased by his proportionate share of the partnership liability. See secs. 705, 722, 752. Thus, the amount realized is equally offset by the basis increase. - 25 - Tax Regs. ("the amount realized from a sale or other disposition of property includes the amount of liabilities from which the transferor is discharged as a result of the sale or disposition"). Petitioner also alleges that he made $56,450 in loans/advances to Tri-City and Newark Wreckers for which he was never reimbursed. In support thereof, he introduced copies of checks made payable to the two entities that he alleges were unpaid "loans". Petitioner's business partner, Thomas Viviano, testified that each partner would periodically advance/lend funds to the entities on a short-term basis. There were no formal loan agreements made between the businesses and their owners. Mr. Viviano testified that it was the practice of the entities to immediately payback these "loans" as the entities earned income, usually within a few months. Petitioner, on the other hand, testified that at the time he sold his interests to Mr. Viviano, he was owed $16,200 from Tri-City and $40,250 from Newark Wreckers. We find Mr. Viviano to be credible. Tri-City's 1989 Form 1065 shows that advances from partners went from $62,938 at the beginning of 1989 to $0 at the beginning of 1990. Thus, we find petitioner was not owed $16,200 from Tri-City at the time he sold his interest. Newark Wreckers is a different story. The 1989 and 1990 Forms 1120 for Newark Wreckers show a beginning and an - 26 - ending balance of advances by shareholders of $24,482 and $36,741, and $36,741 and $117,604, respectively. Petitioner submitted checks showing payments of $40,250 to Newark Wreckers. Most of these checks were written well before the sale transaction and according to Mr. Viviano would have been repaid. Two of the checks, however, were written on February 21 and March 16, 1990, for $2,500 and $5,000, respectively. Considering Mr. Viviano's testimony that the companies repaid shareholder advances within a few months of borrowing, we find it reasonable that Newark Wreckers owed petitioner $7,500 at the time of the sale. Thus, we find that respondent's determination of petitioner's income from this sale should evidence that in 1990, petitioner was still owed $7,500 from Newark Wreckers. However, we do not, in light of trial testimony, find it reasonable that Newark Wreckers owed petitioner the balance, $32,750. (b). Petitioner's Income Reconstructed From Bank Deposits Bank deposits constitute prima facie evidence of income. Tokarski v. Commissioner, 87 T.C. 74, 77 (1986). This method of determining a taxpayer's income assumes that all the money deposited into a taxpayer's bank accounts during a specific period constitutes taxable income. Price v. United States, 335 F.2d 671, 677 (5th Cir. 1964). Of course, "the Government must take into account any non-taxable source or deductible expense of which it has knowledge." Id. Furthermore, "The fact that the - 27 - Commissioner was not completely correct does not invalidate the method employed." DiLeo v. Commissioner, 96 T.C. at 868. Respondent determined tax deficiencies for 1990, 1991, and 1992 in the respective amounts of $172,655,31 $71,337, and $56,075. These deficiency amounts are attributable to respondent's reconstruction of petitioner's income for the years at issue. In utilizing the bank deposits method, respondent calculated petitioner's unreported income as follows:32 Bank Acct. Deposits1 1990 1991 1992 $105,340.39 Milpitas acct. 200593 516,524.02 Milpitas acct. 300466 16,811.57 Milpitas acct. 102605 -- Milpitas acct. 303171 76,463.54 Wells Fargo 363904 4.72 Wells Fargo 325774 Wells Fargo 059183 340.51 Total deposits 715,484.75 $94,272.80 $106,995.75 509,494.83 241,243.77 31,493.96 14,397.00 121,885.27 49,811.07 -- -- -- -- 67.17 40.08 412,514.76 757,186.94 Add: Funds Not Deposited 1,571.77 -- Cash back from deposits -acct. 200593 Cash back from deposits -acct. 300466 Cash back from deposits -acct. 102605 Boscell rent deposited into unknown acct. 62,300.00 61,300.00 -- Total funds avail. 793,556.52 476,701.76 764,364.94 14,200.00 -- $2,887.00 -- 160.00 500.00 6,500.00 31See supra page 2. 32On brief, petitioner admits that because of his criminal conviction he "is estopped to deny that he willfully omitted $78,454.00 and $75,587.00 of income from his 1991 and 1992 returns, respectively." Less: Nonincome Items Deposited - 28 - Nontaxable deposits2 (328,286.83) (74,180.81) (407,639.68) Boscell rents allocable to Viviano (49,200.00) (22,250.00) -- (377,486.83) (96,430.81) (407,639.68) Taxable deposits 380,270.95 356,707.26 Less: Deposits Resulting From Reported Income 59,642.28 Net wages 16,872.00 Interest income State tax refund 3,985.00 Gross rental income 93,423.00 Other income 6,000.00 Total 59,590.17 54,653.28 16,131.00 6,595.00 1,499.00 -- 125,683.00 140,600.00 -- -- 179,922.28 202,903.17 201,848.28 Additional unreported income 236,147.41 177,367.78 154,858.98 1 See appendices A, B, C, D, and E. 2 See appendix F. In arriving at the above stated figures, respondent used bank records, including deposit slips and checks showing that these amounts were deposited into petitioner's bank accounts. Generally, petitioner does not dispute these deposits, and respondent has established, by clear and convincing evidence, that petitioner underreported his income during the taxable years at issue. However, petitioner claims that he is entitled to adjustments in order to determine taxable income. Petitioner bears the burden of proof to show any adjustments which would offset unreported income. Barragan v. Commissioner, T.C. Memo. 1993-92, affd. without published opinion 69 F.3d 543 (9th Cir. 1995). - 29 - 2. Petitioner's Adjustments to Unreported Income Determined by Bank Deposits In attacking respondent's income reconstruction, generally, petitioner argues that he is entitled to adjustments for unclaimed deductions of expenses and unreimbursed loans/advances with respect to his various business activities.33 He contends that these unclaimed adjustments substantially offset the income that respondent reconstructed. (a) Petitioner's Alleged Loans/Advances Petitioner argues that one of the primary adjustments to the amount of reconstructed income is unreimbursed loans/advances that he made to Alviso and GMT.34 Petitioner alleges that when he deposited insurance refund checks payable to Alviso and GMT into his personal bank accounts, he transferred portions of those refunds back to those corporations. While this is true, as far as it goes, petitioner 33"[I]t is well settled- 'that evidence of unexplained receipts shifts to the taxpayer the burden of coming forward with evidence as to the amount of offsetting expenses, if any.'" Franklin v. Commissioner, T.C. Memo. 1993-184 (quoting Siravo v. United States, 377 F.2d 469, 473 (1st Cir. 1967)). 34However, it appears he was reimbursed for many of these alleged loans. For example, compare petitioner's check No. 1086 from Bank of Milpitas, account No. 512-001-200593, dated Dec. 19, 1989, for $999 made payable to "DMV" and GMT's check No. 3895 dated Dec. 27, 1989, for $1,000 made payable to petitioner which states on the memo line "Reimburse for DMV fees". Furthermore, petitioner's bookkeeper testified that petitioner's businesses customarily repaid such loans. Additionally, petitioner testified that some of the checks he offered were not loans but represented his personal expenses. - 30 - characterized the transfers back as "loans" to his corporations. Petitioner did not report the receipt of the refunds as income, and because he characterized the transfer of these amounts to the corporations as loans, they would not be recorded as corporate income. And given that these transfers were characterized as loans, petitioner would be entitled to receive these amounts back from the corporations as nontaxable loan repayments. Under these circumstances, petitioner is not entitled to reduce his omitted income by the amounts that he recorded as "loans". Petitioner also alleges that he advanced his personal funds to purchase parts and equipment for use by Alviso or GMT.35 In support thereof, petitioner provides the Court with photocopies of checks made from bank accounts over which he had signatory authority.36 In all, petitioner alleges that during the 3-year period, he advanced Alviso and GMT more than $120,000 for which he was never reimbursed. However, according to petitioner's brief, he is not absolutely sure of the purposes for some of 35For example, petitioner claims that in May 1990, he purchased a hood for $2,000 using his personal American Express card to pay for it. For support, petitioner presents only a photocopy of a check for $4,260 made payable to American Express. Petitioner admitted at trial that he wrote "Hood ? 2000" on the memo line of the check after the check had cleared his bank. 36For example, on Aug. 10, 1989, petitioner paid $321 to "DMV"; on Apr. 8, 1992, he paid $900 to "Rux Onito"; and on Aug. 3, 1992, he paid $1,250 to "Steve Micheles". - 31 - these expenditures.37 Additionally, some of the copies of checks that petitioner provided are made payable to "cash" for significant sums of money.38 Petitioner also alleges that he purchased vehicles for the benefit of Alviso and GMT with his personal funds for which he was not reimbursed. However, he fails to provide copies of the titles or any documentation which would demonstrate in whose names the alleged vehicles were purchased. Petitioner provides no evidence that he advanced/lent substantial amounts of money to Alviso or GMT except copies of canceled checks and his trial testimony.39 No payee testified as to these expenditures. There is no evidence of a repayment schedule, maturity date, special rights and duties of the parties, written memorialization of the debtor-creditor relationship, etc. On this record, we find that petitioner 37On brief, petitioner concedes that, to the extent he does not know the purpose for the expenditure, he is not now arguing that such expenditure is an adjustment to reconstructed income. 38For example, check No. 109 dated Mar. 20, 1990, for $9,645; check No. 112 dated Apr. 17, 1990, for $9,741.50; check No. 119 dated Apr. 30, 1990, for $9,847.00; check No. 118 dated Apr. 27, 1990, for $8,697.50; and check No. 117 dated Apr. 24, 1990, for $9,750.00. Despite providing the Court with copies of the aforesaid checks, petitioner is now not claiming these checks represent either advances or any other deductible business expense. 39The record indicates that petitioner did not make any such advances to Alviso or GMT. The balance sheets included with their 1990, 1991, and 1992 returns list "Loans from Stockholders" as $0. - 32 - failed to show that these "advances" constituted expenditures giving rise to bona fide indebtedness. But even if such expenditures were construed as loans to Alviso or GMT, they would not be deductible by petitioner or offset his income. (b) Unclaimed Expenses Generally, ordinary and necessary expenses paid or incurred in the carrying on of a trade or business are deductible by such individual engaged in the trade or business. Sec. 162(a); sec. 1.162-1(a), Income Tax Regs. The expenditure must be "directly connected with or pertaining to the taxpayer's trade or business". Sec. 1.162-1(a), Income Tax Regs. "The determination of whether an expenditure satisfies the requirements of section 162 is a question of fact." Shea v. Commissioner, 112 T.C. 183, 186 (1999). The taxpayer has the burden of proving that he is entitled to deductions. INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435 (1934). All deductible expenses are subject to substantiation. Secs. 274(d), 6001. The general substantiation requirement is set forth in section 6001 and provides in pertinent part: "Every person liable for any tax imposed by this title, or for the collection thereof, shall keep such records * * * and comply with such rules and regulations as the Secretary may from time to time - 33 - prescribe."40 The regulations provide that "any person subject to tax * * * shall keep such permanent books of account or records, * * * as are sufficient to establish the amount of * * * deductions". Sec. 1.6001-1(a), Income Tax Regs. In the event that a taxpayer establishes that a deductible expense has been paid, but he is unable to substantiate the precise amount, the Court may estimate the amount of such deduction bearing heavily against the taxpayer.41 Cohan v. Commissioner, 39 F.2d 540, 543-44 (2d Cir. 1930). However, the Court cannot make such an estimate unless the taxpayer presents sufficient evidence to provide a reasonable basis upon which the estimate is made. Vanicek v. Commissioner, 85 T.C. 731, 743 (1985). (i). Deductibility of Petitioner's Alleged Expenses (A). Newark T&B Expenses Petitioner claims that no expenses relating to Newark T&B were claimed as deductions. Petitioner's argument centers on the real property he bought to conduct Newark T&B's business 40Strict substantiation is required for specific classes of expenses, including "listed property" described in sec. 280F(d)(4). See sec. 274(d). 41The Court's ability to reasonably estimate the amount of a deduction is curtailed in the case of certain classes of expenses. Sec. 274(d) limits the Court's estimating ability. Sanford v. Commissioner, 50 T.C. 823, 827 (1968), affd. per curiam 412 F.2d 201 (2d Cir. 1969); see Golden v. Commissioner, T.C. Memo. 1993-602. - 34 - operations and the expenses that he alleges are associated with this activity.42 These expenses include, inter alia, telephone and utility bills. The record shows that petitioner, in contradiction to his argument, did deduct expenses associated with this property. For example, petitioner deducted $6,639, $11,699, and $11,392 in connection with the real property as listed on Schedule E for his 1990, 1991, and 1992 returns, respectively. Indeed, petitioner provided no invoices to substantiate any of the expenses he alleges that he paid on Newark T&B's behalf. Furthermore, petitioner failed to offer evidence that these expenses were paid by Newark T&B and not by Alviso or GMT.43 (B) Petitioner's Racing Business Petitioner also argues that he did not claim as deductions any expenses associated with his racing business. He alleges that he incurred expenses of $17,847.23, $15,065.23, and 42On brief, petitioner claims he is entitled to unspecified amounts of deductions for depreciation. However, there is insufficient evidence in the record with which we can calculate any depreciation to which petitioner might be entitled. 43"The rule is well established that the failure of a party to introduce evidence within his possession and which, if true, would be favorable to him, gives rise to the presumption that if produced it would be unfavorable." Wichita Terminal Elevator Co. v. Commissioner, 6 T.C. 1158, 1165 (1946), affd. 162 F.2d 513 (10th Cir. 1947). "This is especially true where, as here, the party failing to produce the evidence has the burden of proof or the other party to the proceeding has established a prima facie case." Id. - 35 - $30,283.07 for 1990, 1991, and 1992, respectively. In support thereof, petitioner proffers copies of checks from the "Alviso Rock/HK Racing" bank account, copies of bank account statements, and invoices. No one other than petitioner testified about this endeavor or the purported expenses. From the evidence provided, we are unable to determine whether the expenses detailed in the invoices were for the benefit of petitioner's racing business or for one of his related businesses. Nearly all the invoices are made to "Alviso Rock". (ii). Petitioner Does Not Sustain His Adjustments to Reconstructed Income We are unable to sustain petitioner's alleged unclaimed expense deductions to the income that respondent reconstructed. Petitioner fails to provide sufficient evidence to support the expense deductions he claims for the years at issue. Petitioner failed to offer the testimony of any of the payees of his checks to support his allegations. The only evidence he has provided are photocopies of checks, some invoices, and his trial testimony. We find petitioner's testimony self-serving, vague, and not persuasive. "It is well settled that we are not required to accept petitioner's self-serving testimony in the absence of corroborating evidence." Jacoby v. Commissioner, T.C. Memo. 1994-612 (citing Lerch v. Commissioner, 877 F.2d 624, 631-632 (7th Cir. 1989), affg. T.C. Memo. 1987-295); see Geiger v. Commissioner, 440 F.2d 688, 689 (9th Cir. 1971), affg. per curiam - 36 - T.C. Memo. 1969-159; Niedringhaus v. Commissioner, 99 T.C. 202, 212 (1992); Tokarski v. Commissioner, 87 T.C. at 77 ("Under all the circumstances, we are not required to accept the self-serving testimony of petitioner"). Furthermore, we are unable, given the record before us, to determine which expenses are associated with which business activity, be it petitioner's corporations or his unincorporated businesses. The record unequivocally demonstrates that petitioner failed to follow and respect business formalities. Instead, the record evidences the inflows and outflows of substantial sums of money by and between petitioner and his related businesses. The books and records of petitioner's affiliated corporations and businesses were not offered as evidence.44 3. Taxable Income and Earnings and Profits Petitioner argues, for the first time on brief, that respondent failed to demonstrate that there were sufficient earnings and profits (E&P) to deem funds that petitioner received from GMT and Alviso as taxable dividends.45 Additionally, 44For example, the invoices that petitioner submitted in support of his entitlement to deductions for expenses associated with his racing business are made to "Alviso". Without the books and records of Alviso, it is impossible to determine if these invoices represent expenses of Alviso, for which deductions have already been taken. 45"This Court generally will not consider issues that are (continued...) - 37 - petitioner alleges that respondent failed to demonstrate that any amounts received from Alviso and GMT exceeded his basis therein. Generally, gross income includes net accessions to wealth from whatever source derived. Sec. 61; Han v. Commissioner, T.C. Memo. 2002-148 (citing Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955)). Section 301, however, places a restriction on the definition of gross income. Barnard v. Commissioner, T.C. Memo. 2001-242. Generally, that section provides that funds distributed by a corporation over which the shareholder has dominion and control are taxed under the auspices of section 301(c). Id. Pursuant to section 301(c), a constructive dividend46 is taxed as ordinary income only to the 45(...continued) raised for the first time on brief, particularly where the belated claim would prejudice a party." Han v. Commissioner, T.C. Memo. 2002-148; Rules 34(b)(4), 41(a) and (b); Foil v. Commissioner, 92 T.C. 376, 418 (1989), affd. 920 F.2d 1196 (5th Cir. 1990); Markwardt v. Commissioner, 64 T.C. 989, 997 (1975); see also Bob Wondries Motors, Inc. v. Commissioner, 268 F.3d 1156 (9th Cir. 2001), affg. Toyota Town, Inc. v. Commissioner, T.C. Memo. 2000-40. This Court has held on numerous occasions that it will not consider issues not pleaded. See, e.g., Estate of Mandels v. Commissioner, 64 T.C. 61 (1975); Estate of Horvath v. Commissioner, 59 T.C. 551, 556 (1973); Frentz v. Commissioner, 44 T.C. 485, 491 (1965), affd. 375 F.2d 662 (6th Cir. 1967). 46"The crucial concept in a finding that there is a constructive dividend is that the corporation has conferred a benefit on the shareholder in order to distribute available earnings and profits without expectation of repayment." Truesdell v. Commissioner, 89 T.C. 1280, 1295 (1987) (citing Noble v. Commissioner, 368 F.2d 439, 443 (9th Cir. 1966), affg. T.C. Memo. 1965-84). - 38 - extent of the distributing corporation's E&P;47 any excess is nontaxable return of capital to the extent of the taxpayer's basis; and any remaining amount received is taxable as capital gain from the sale or exchange of a capital asset. Sec. 301(c)(1),(2), and (3); Truesdell v. Commissioner, 89 T.C. 1280, 1295-1298 (1987); Barnard v. Commissioner, supra. "It is well established that when controlling shareholders divert corporate income to themselves, it is proper to treat such diverted funds as constructive dividends for tax purposes." DiLeo v. Commissioner, 96 T.C. at 883. As stated more fully above, the Commissioner's deficiency determination is presumptively correct, and the taxpayer bears the burden of showing that determination is erroneous. See Rule 142(a); Zack v. Commissioner, 692 F.2d 28 (6th Cir. 1982); DiLeo v. Commissioner, supra at 871. Respondent's deficiency determination included those amounts diverted from Alviso and GMT. Under these circumstances, petitioner bears the burden of showing that Alviso and GMT did not have sufficient E&P to deem the subject "distributions" to be constructive dividends. DiZenzo v. Commissioner, 348 F.2d 122, 125-127 (2d Cir. 1965) (burden is on taxpayers to establish corporation did not have sufficient E&P), revg. T.C. Memo. 1964-121; Truesdell v. 47The determination of earnings and profits is governed by sec. 316 and the regulations promulgated thereunder. - 39 - Commissioner, supra; Zalewski v. Commissioner, T.C. Memo. 1988- 340; Delgado v. Commissioner, T.C. Memo. 1988-66; see Price v. United States, 335 F.2d at 677 ("It is the burden of the taxpayer to demonstrate a non-taxable source for this cash."). Here, petitioner failed to provide any proof that Alviso and GMT did not have sufficient E&P to determine the distributions as taxable, constructive dividends. Likewise, petitioner offered no evidence of his adjusted bases.48 Accordingly, we find that petitioner has untimely raised the E&P and basis issues and, otherwise, has failed to meet his burden.49 4. Respondent's Deficiency Determinations Are Not Erroneous 48In United States v. Miller, 545 F.2d 1204, 1215 (9th Cir. 1976), the court explained: In holding that the constructive distribution should not automatically be applied, it is not herein asserted that diverted funds could never be a return of capital. However, to constitute the latter, there must be some demonstration on the part of the taxpayer and/or the corporation that such distributions were intended to be such a return. To hold otherwise would be to permit the taxpayer to divert such funds and if not caught, to later pay out another return of capital; or if caught, to avoid the conviction by raising the defense that the sums were a return of capital and hence non-taxable. 49Additionally, petitioner failed to demonstrate that the distributions from his wholly owned corporations and employers were not additional remuneration for the management services he provided. The record reflects that Alviso and GMT each paid petitioner a salary during the years at issue. - 40 - We find that respondent has produced substantial evidence demonstrating that petitioner received unreported income. Delaney v. Commissioner, 743 F.2d 670, 671 (9th Cir. 1984), affg. T.C. Memo. 1982-666; see Bradford v. Commissioner, 796 F.2d 303, 305 (9th Cir. 1986), affg. T.C. Memo. 1984-601. Furthermore, we find that petitioner has failed to establish by a preponderance of the evidence that respondent's determinations were arbitrary or erroneous. Rapp v. Commissioner, 774 F.2d 932, 935 (9th Cir. 1985), Larsen v. Commissioner, 765 F.2d 939, 941 (9th Cir. 1985); Delaney v. Commissioner, supra at 671. Accordingly, we sustain, subject to the aforesaid50 and the concessions of the parties, respondent's deficiency determinations for the years herein at issue. B. Fraud Penalties The Commissioner bears the burden of proving by clear and convincing evidence that an "underpayment exists for the years in issue and that some portion of the underpayment is due to fraud." Temple v. Commissioner, T.C. Memo. 2000-337 (citing sec. 7454(a), Rule 142(b); Niedringhaus v. Commissioner, 99 T.C. at 210), affd. 62 Fed. Appx. 605 (6th Cir. 2003); see Baumgardner v. Commissioner, 251 F.2d 311 (9th Cir. 1957), affg. T.C. Memo. 50As previously stated, the computation under Rule 155 shall evidence that petitioner was owed $7,500 from Newark Wreckers. See supra page 26. - 41 - 1956-112; Hebrank v. Commissioner, 81 T.C. 640, 642 (1983). Thus, respondent must establish that petitioner underpaid his taxes for each year in issue and that some part of the underpayment for each year is due to fraud. DiLeo v. Commissioner, supra at 873. 1. Clear and Convincing Evidence of Underpayment "To prove an underpayment, the Commissioner is not required to establish the precise amount of the deficiency determined by him." Id.; see Otsuki v. Commissioner, 53 T.C. 96, 105 (1969). "However, he cannot discharge his burden by simply relying on the taxpayer's failure to prove error in his determination of the deficiency." DiLeo v. Commissioner, supra at 873. The Commissioner need only establish that the taxpayer received unreported income and that the nondisclosure resulted in a tax deficiency. United States v. Campbell, 351 F.2d 336, 338 (2d Cir. 1965); Elwert v. United States, 231 F.2d 928, 931 (9th Cir. 1956); United States v. Bender, 218 F.2d 869, 871-72 (7th Cir. 1955); Langworthy v. Commissioner, T.C. Memo. 1998-218. When the allegations of fraud are intertwined with unreported and indirectly reconstructed income, the Commissioner can satisfy his burden of proving the underpayment in one of two ways: (1) By proving a likely source of the unreported income; or (2) where the taxpayer alleges a nontaxable source, the Commissioner may meet his burden by disproving the taxpayer's - 42 - alleged nontaxable source. DiLeo v. Commissioner, supra at 873- 874. In this case, there is no question of the origin of the unreported income. The parties have also agreed that some deposits were from nontaxable sources. Petitioner admits on brief that he willfully omitted $78,454 and $75,587 of income from his 1991 and 1992 returns. In his written guilty plea in his criminal case, petitioner admitted that he willfully omitted reportable income of $78,454 and $75,587 and that there was additional tax due on this omitted income of $19,299 and $10,377 for 1991 and 1992, respectively. And, as previously explained, there is clear and convincing evidence that he failed to report additional amounts of income for each of the years at issue. During the 3-year period at issue, more than $1.8 million flowed through his bank accounts. Petitioner does not dispute this, but instead argues that much of this money is nontaxable reimbursements for moneys advanced to and/or expenses incurred for the benefit of his various business activities. When bank deposits make out a prima facie case of underreported income, the taxpayer has the burden of proving additional expenses that he did not claim on his returns. Morse v. Commissioner, T.C. Memo. 2003-332 (citing Siravo v. United States, 377 F.2d 469, 473-474 (1st Cir. 1967); Elwert v. United States, supra at 933). As previously explained, petitioner has failed to do so. - 43 - There is also clear and convincing evidence that petitioner failed to report substantial income from the sale of his interest in Tri-City and Newark Wreckers in 1990. Accordingly, we are convinced that respondent has proven by clear and convincing evidence that petitioner underpaid his income taxes due and owing for the years at issue. 2. Intent To Defraud As previously explained, the Commissioner bears the burden of proving fraud by clear and convincing evidence. Sadler v. Commissioner, 113 T.C. 99, 102 (1999); Posnanski v. Commissioner, T.C. Memo. 2001-26; see Henson v. Commissioner, 887 F.2d 1520 (11th Cir. 1989), affg. in part and revg. in part on another ground T.C. Memo. 1986-303; Temple v. Commissioner, supra. "Where fraud is determined for each of several years, respondent's burden applies separately for each of the years." Temple v. Commissioner, supra; see Cefalu v. Commissioner, 276 F.2d 122 (5th Cir. 1960), affg. T.C. Memo. 1958-37; Baumgardner v. Commissioner, supra. "Fraud is the intentional wrongdoing on the part of a taxpayer to evade a tax believed to be owing." Temple v. Commissioner, supra; see DiLeo v. Commissioner, 96 T.C. at 874; Prof. Serv. v. Commissioner, 79 T.C. 888, 930 (1982). "The required state of mind is one which, 'if translated into action, is well calculated to cheat or deceive the government.'" Zell v. - 44 - Commissioner, 763 F.2d 1139, 1143 (10th Cir. 1985), affg. T.C. Memo. 1984-152 (quoting 10 Mertens, Law of Federal Income Taxation, sec. 55.10, at 46 (1984)). A taxpayer's background and the context of the events in question may be considered in determining fraudulent intent. Plunkett v. Commissioner, 465 F.2d 299 (7th Cir. 1972), affg. T.C. Memo. 1970-274; see Temple v. Commissioner, supra (a taxpayer's level of education and his prior history of filing income tax returns are relevant to the inquiry). Because it is difficult to prove fraudulent intent by direct evidence, fraud can be inferred from various kinds of circumstantial evidence. Courts describe these "badges of fraud" as including the following: (1) Understatement of income;51 (2) failing to maintain adequate records; (3) failure to file tax returns; (4) implausible or inconsistent explanations; (5) concealment of assets; (6) failure to cooperate with tax authorities; (7) the filing of false documents; (8) making of false and inconsistent statements to revenue agents; (9) concealing income from a taxpayer's tax preparer; and (10) 51"The consistent understatement of large amounts of income for a number of years is evidence of willful intent to evade." Otsuki v. Commissioner, 53 T.C. 96, 108 (1969). In Holland v. United States, 348 U.S. 121, 139 (1954), "the Supreme Court declared that 'evidence of a consistent pattern of underreporting large amounts of income' will support 'an inference of willfulness'". Otsuki v. Commissioner, supra at 108. - 45 - extensive dealings in cash. Bradford v. Commissioner, 796 F.2d at 307; Parks v. Commissioner, 94 T.C. 654, 664 (1990); Temple v. Commissioner, T.C. Memo. 2000-337. No single factor is necessarily dispositive, but a combination of several factors is persuasive circumstantial evidence of fraud. Petzoldt v. Commissioner, 92 T.C. at 699. "A pattern of consistent underreporting of income, particularly when accompanied by other circumstances exhibiting an intent to conceal, justifies the inference of fraud." Posnanski v. Commissioner, supra; see Holland v. Commissioner, 348 U.S. 121, 137 (1954). Petitioner consistently underreported large sums of money. See Marcus v. Commissioner, 70 T.C. 562, 577 (1978), affd. without published opinion 621 F.2d 439 (5th Cir. 1980). Petitioner's failure to substantiate adequately his alleged advances and expenses makes it impossible to verify his allegations. This Court has found in a similar case that the "inadequacy of petitioners' records, under the circumstances, constitutes a significant indicia of fraud." Otsuki v. Commissioner, 53 T.C. at 110 (citing Galant v. Commissioner, 26 T.C. 354, 365 (1956)). Petitioner cannot rely upon events that occurred in his life before, during, and after the relevant periods in issue. While we are sympathetic with petitioner's personal problems, we cannot condone his failure to report significant sums of income over a - 46 - 3-year period merely because his mind was not on business.52 We find petitioner's defense of personal tragedy misplaced. Petitioner was sufficiently focused and cognizant to, inter alia, open and operate numerous businesses during the relevant period, engage in significant investment activities, engage the assistance of trained accounting professionals, and earn and deposit significant sums of money into his numerous bank accounts. In support of our finding of fraud, we outline pertinent portions of the record: (1) Petitioner sold his interest in Tri-City and Newark Wreckers for which he received $200,000 and was relieved of substantial indebtedness. To this day, petitioner has failed to report this transaction.53 52In Otsuki v. Commissioner, supra at 110, the taxpayer advanced, and we rejected a similar argument. The taxpayer was too busy and too tired to maintain adequate business records. 53Petitioner admits on brief, that he failed to report a net gain from the sale of between $17,247 and $118,247. This, of course, is after inclusion of $41,105 in additional income for 1990, which accordingly, increased his basis in the Tri-City partnership. Thus, before respondent's examination and redetermination of Tri-City's 1990 income, it was reasonable for petitioner to assume that he had substantially more net gain (at least $41,105 more) from the sale of Tri-City, which he never reported. Petitioner seeks solace in a statement that his accountant prepared, which he attached to his 1990 return. We find this statement, given the specific circumstances of this case, at the (continued...) - 47 - (2) Petitioner diverted substantial amounts of money from his related corporations, Alviso and GMT. To hide the character of these funds petitioner gave a portion of these diverted funds back to his corporations, labeling those funds as loans. To that end, petitioner purposely misled his accountants as to the true nature of these funds. For example, on one of GMT's bank statements for the account into which a $50,000 check was deposited, there is a handwritten notation that the corporation's bookkeeper made which reads "Art [the accountant]- George put this money out of pocket - don't credit as income. We're going to pay our line of credit monthly out of this account, Yvonne." (3) Petitioner garnered significant funds over a 3-year period from his solely owned, unincorporated business Newark T&B, and he failed to report any income earned therefrom. Petitioner characterized this endeavor on his income tax returns Schedules E as a "lot". Furthermore, petitioner failed to maintain proper books and records for this business. (4) Petitioner maintained an automobile racing business, which also earned him substantial sums of income. Again, 53(...continued) very least vague and ill-informing. This statement speaks only to petitioner's inability "TO REPORT HIS SHARE OF THE PARTNERSHIP'S ACTIVITY FOR THE 1990 TAX YEAR." The statement does not communicate that in 1990 petitioner received at least $300,000 of value in exchange for his interest, a transaction which is clearly not a "partnership activity". Furthermore, the statement refers only to Tri-City and not to Newark Wreckers. - 48 - petitioner failed to report any of these earnings or maintain adequate books and records for this business. (5) Petitioner owned and operated for income and investment at least 12 parcels of real property. Although petitioner apparently did report much of the income he received from these properties, he failed to report all the income. When questioned about this failure, petitioner explained: "I just don't really have an explanation." However, petitioner did claim expense deductions for these properties. Again, petitioner failed to maintain adequate books and records for this significant business endeavor. (6) During the relevant period, petitioner dealt in significant sums of cash or its equivalent for which he has no explanation. For example, during 1990, petitioner wrote four checks made payable to cash for the total sum of $37,834. At trial, petitioner could not recall the purpose for, or use of, these funds. Likewise, petitioner deposited large sums of cash and its equivalent into his bank accounts. We infer significant dealings in cash without a definite explanation as an indicia of fraud. See Parks v. Commissioner, 94 T.C. 654 (1990). (7) Petitioner failed to inform his accountants (and his bookkeeper) of Newark T&B and his racing business. Both of these businesses earned income for the years at issue, none of which was reported. - 49 - (8) Petitioner's admission that he purposely mislabeled checks to his corporation as loans is also evidence of his willingness to defraud. See Solomon v. Commissioner, 732 F.2d 1459 (6th Cir. 1984), affg. T.C. Memo. 1982-603; Afshar v. Commissioner, 692 F.2d 751 (4th Cir. 1982), affg. without published opinion T.C. Memo. 1981-241. The record before the Court clearly and convincingly demonstrates a pattern of consistent underreporting of income. The record clearly and convincingly shows that petitioner intentionally concealed significant business operations from his accountants and bookkeeper. Petitioner's vague testimony buttresses our finding. There can be little doubt that petitioner's failure to keep adequate records of all earnings and expenses is material evidence of fraud. See Otsuki v. Commissioner, 53 T.C. at 109. "To hold otherwise would, as the Supreme Court stated in United States v. Johnson, 319 U.S. 503, 518 (1943) 'be tantamount to holding that skillful concealment is an invincible barrier to proof.'" Id. at 109. The insufficiency of petitioner's records, under these circumstances, constitutes a significant indicia of fraud. Id. at 110. 3. Petitioner's Conviction and Collateral Estoppel We find petitioner's guilty plea of knowingly filing false returns for 1991 and 1992 is additional evidence, which ensures us that the imposition of the fraud penalty in this case is - 50 - justified.54 In his written guilty plea, petitioner admitted that he "willfully" made and signed his 1991 and 1992 individual tax returns that he "did not believe" [were] "true and correct" [and] "willfully omitted true and correct information concerning" [his] "income, knowing then that" he "had additional reportable income" of $78,454 and $75,587 for 1991, and 1992, and that there was additional tax due and owing on this additional income of $19,299 and $10,377 for 1991 and 1992, respectively. Petitioner's conviction for filing false tax returns for 1991 and 1992, although not dispositive of the fraud issue, is a factor to be considered in determining fraud. See Wright v. Commissioner, 84 T.C. 636, 643-44 (1985). Petitioner admits that he is estopped to deny that he willfully omitted $78,454 and $75,587 of income for 1991 and 1992, respectively, but contends that he is not estopped to deny the fraud penalty for those years. Petitioner concedes that his conviction is relevant evidence on the issue of fraud. The doctrine of collateral estoppel precludes the relitigation of any issue or fact that was actually litigated and necessarily determined by a valid and final judgment. Peck v. Commissioner, 90 T.C. 162 (1988), affd. 904 F.2d 525 (9th Cir. 1990); Wright v. Commissioner, supra at 639; Wilson v. 54On brief, petitioner agrees that his "conviction for 1991 and 1992 may be considered relevant on the issue of fraud." - 51 - Commissioner, T.C. Memo. 2002-234. Of course, this doctrine "must be confined to situations where the matter raised in the second suit is identical in all respects with that decided in the first proceeding and where the controlling facts and applicable legal rules remain unchanged." Commissioner v. Sunnen, 333 U.S. 591, 599-600 (1948). "A prior conviction will estop a party from contesting in a later civil suit any element necessarily established in the criminal trial."55 Considine v. United States, 683 F.2d 1285, 1286 (9th Cir. 1982). As the Court of Appeals for the Ninth Circuit concluded, the intent to avoid tax under section 7206(1) and the filing of a false return does not require a fraudulent intent. Id. at 1287; see Wright v. Commissioner, supra at 641 (overruling a Tax Court decision and following the Court of Appeals' holding and reasoning in Considine). "Because section 7206(1) does not require a willful attempt to evade tax, a conviction under section 7206(1), without more, does not establish fraudulent intent."56 Considine v. United States, supra at 1287. However, 55"[T]he question is whether the issue under section 6653(b) is 'identical in all respects' to that decided under section 7206(1)." Wright v. Commissioner, 84 T.C. 636, 639 (1985). 56The Court of Appeals for the Ninth Circuit did determine that the prior conviction did estop the taxpayer from contesting that the return was willfully false and resulted in an underpayment of tax; proof of falsity is a necessary element of sec. 7206(1). Considine v. United States, 683 F.2d 1285, 1287 (continued...) - 52 - "a conviction for willful falsification, under section 7206(1), while not dispositive, will be one of the facts to be considered in a trial on the merits." Wright v. Commissioner, supra at 643- 644 (emphasis added). Petitioner argues that comments the judge made during his criminal sentencing colloquy are "highly persuasive" to whether he fraudulently evaded the payment of taxes. We disagree with petitioner's argument that statements the judge made during his criminal sentencing hearing are in some way persuasive on the issue of whether petitioner fraudulently evaded the payment of tax.57 See N.Y. v. Julius Nasso Concrete Corp., 202 F.3d 82 (2d 56(...continued) (9th Cir. 1982). 57Judge Fogel stated: But I don't think the conduct looked at in its totality suggests that the reason * * * [petitioner] diverted the money was to avoid paying money to the Internal Revenue Service. I think that's the finding that the Court would have to make. So I think we're looking at the lower of the two [sentencing] calculations. * * * * * * * The Court has considered the entire 1990, 1991, 1992, but that there is no intent to evade that's established convincingly by the record. So I would find this is a [sentencing] guideline level 6 which gives the Court an opportunity or gives the Court the discretion, rather, to impose anywhere from zero to six months incarceration. - 53 - Cir. 2000); SEC v. Monarch Funding Corp., 192 F.3d 295 (2d Cir. 1999); United States v. Barnette, 10 F.3d 1553 (11th Cir. 1994). We do not know what evidence that court had before it when making those comments. Suffice it to say, the record in this case clearly and convincingly leads us to the conclusion that petitioner intended to fraudulently evade the payment of his taxes for 1990, 1991, and 1992. Petitioner also argued that assessment is barred by section 6501(a), as the period of limitations for assessing tax had expired. Since we have held that respondent has established by clear and convincing evidence that petitioner underpaid his tax liabilities for 1990, 1991, and 1992 and that such underpayments were due to fraud, the statute of limitations does not bar respondent's assessment and collection activities. See sec. 6501(c)(1); Plunkett v. Commissioner, 465 F.2d 299 (7th Cir. 1972), affg. T.C. Memo. 1970-274; DiLeo v. Commissioner, 96 T.C. at 880. Decision will be entered under Rule 155. - 54 - APPENDIX "A" THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1990 Deposit Deposit Check Date 01/03/90 01/11/90 01/26/90 02/14/90 02/28/90 02/28/90 03/08/90 Amount Check Date Number $6,182.32 $9,737.66 01/05/90 01/02/90 01/03/90 01/08/90 01/03/90 $4,674.66 01/09/90 01/18/90 1/22/90 01/12/90 01/25/90 01/12/90 01/24/90 $5,450.00 02/01/90 02/07/90 02/06/90 02/06/90 $1,000.00 $7,248.22 02/21/90 02/10/90 02/16/90 02/09/90 $7,346.21 03/03/90 03/06/90 03/02/90 03/01/90 03/02/90 1304 17156 816 1616 61526 825 3187 839 5624 5583 1311 4096 1036 376 19288 9014592 860 3220 309695 326862 1053 8122797 34428 10194 1360 Payor Unknown Check Amount $6,182.32 $349.66 $8,400.00 $200.00 $550.00 $238.00 American Business Ins. Brokers $200.00 BAMA Equipment P.S.B. Trucking Inc. Louis W. & Marion E. Bewley Louis W. & Marion E. Bewley Piazza Mobil Sweeping Neil & Betsy Holets $1,450.00 $200.00 Louis W. & Marion E. Bewley $25.00 Tri City Truck Parts and Equip $300.00 $349.66 $2,150.00 Alviso Rock Inc. BAMA Equipment George Maciel Trucking Inc. $250.00 $500.00 $200.00 $4,500.00 Daniel Parquette James Morrow Marion Bewley Taco Bravo Yard Rent Rent 1-22-90 thru 2-22-90 Refund Straight line Parts Re: ??? Feb Rent-Balance of Account $0.00 Correction of 2/28/90 Deposit Louis W. & Marion E. Bewley $600.00 $1,450.00 $4,380.14 $1,818.08 $459.00 $1,936.02 $1,150.00 $2,451.53 $349.66 Neil & Betsy Holets 2/22/90-3/22/90 State Farm Mutual Auto Ins State Farm Mutual Auto Ins Daniel Parquette California Land Title Co. South Bay Transportation Alviso Rock Inc. BAMA Equipment Mar Rent Escrow 284613-LM Parts Check Memos Comments Less Cash Parts Payable: Alviso Rock Payable: Gerald E. Waller Payable to Alviso Rock Money Order Cashiers Check Payable: Alviso Rock Inc. Payable: Alviso Rock THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1990 - 55 - Deposit Deposit Check Date Amount Check Date Number 03/06/90 03/06/90 03/16/90 $1,752.00 03/11/90 03/08/90 03/14/90 $3,474.10 04/03/90 03/29/90 $1,917.87 04/05/90 04/11/90 04/12/90 04/05/90 04/09/90 04/05/90 $7,528.49 04/20/90 04/23/90 04/19/90 04/20/90 04/09/90 03/14/90 04/18/90 04/26/90 04/26/90 $1,918.45 06/16/90 06/12/90 06/06/90 06/14/90 06/14/90 06/12/90 $3,175.29 06/18/90 04/04/90 04/17/90 04/30/90 06/19/90 07/02/90 1366 889 83508 900 1678 1370 1412 2294 429 130 939 927 1707 8123340 3286 957 22834 8123737 418767 415163 62372 10322 2427 490 1016 1010 2678 2673 375 1026 George Maciel Trucking Inc. James Morrow Daniel Estacio Louis W. & Marion E. Bewley Revlon Beauty Care Payor BAMA Equipment Louis W. & Marion E. Bewley Piazza Mobil Sweeping BAMA Equipment BAMA Equipment Check Amount $600.00 $400.00 $2.00 $200.00 $550.00 $1,000.00 $1,000.00 $2,474.10 $18.25 $75.74 $200.00 $200.00 $550.00 $873.88 $1,450.00 $400.00 $109.39 Saratoga Savings & Loan Assoc $44.42 $28.95 $393.00 $154.53 American Business Ins. Brokers Louis W. & Marion E. Bewley Louis W. & Marion E. Bewley Piazza Mobil Sweeping California Land Title Co. Fireman's Fund Fireman's Fund Neil & Betsy Holets Louis W. & Marion E. Bewley California Land Title Co. James Morrow Alviso Rock Inc. George Maciel Trucking Inc. $2,474.10 $2,474.10 $650.00 $200.00 $200.00 $386.02 $182.43 $300.00 Analytical Maintenance Service Louis W. & Marion E. Bewley $200.00 Louis W. & Marion E. Bewley Louis W. & Marion E. Bewley George Maciel Trucking Inc. George Maciel Trucking Inc. Check Memos March Rent Comments Less Cash Rent Yard Phone Bill PGE Yard Rent Escrow 287641-LM 4/22 thru 5/22 Escrow 284613-LM Rent Rent Payable to Daniel B. Estacio Payable to Gary Whiteman THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1990 - 56 - Deposit Deposit Check Date Amount Check Date Number 07/10/90 07/18/90 08/06/90 08/15/90 06/05/90 06/28/90 $876.47 07/03/90 07/06/90 $1,850.00 07/06/90 07/16/90 07/17/90 $5,878.36 07/26/90 07/31/90 07/26/90 $5,263.73 08/13/90 08/08/90 08/10/90 08/04/90 08/08/90 08/13/90 08/06/90 08/13/90 1132 11572 1149 1145 1846 1045 528 10074 2884 1230 248 445 1640 1870 1071 1063 71088335 6911 4649 1641 Check Amount $500.00 $1.19 $2,474.10 $326.47 $550.00 $200.00 $650.00 $1,000.00 $2,503.80 $2,474.56 $500.00 $400.00 $600.00 $550.00 $200.00 $200.00 $113.73 $1,600.00 $1,000.00 $1,000.00 Payor Daniel Parquette Proctor & Gamble Alviso Rock Inc. Daniel Parquette Piazza Mobil Sweeping Louis W. & Marion E. Bewley James Morrow Bill's Trucking Inc. George Maciel Trucking Inc. Alviso Rock Inc. Daniel Parquette Rex A. Hill BAMA Equipment Piazza Mobil Sweeping Louis W. & Marion E. Bewley Louis W. & Marion E. Bewley American Express Travel Curt Biro Trucking Taco Bravo BAMA Equipment 08/17/90 $1,571.77 07/31/90 63618 $3,143.54 American Business Ins. Brokers 08/27/90 08/27/90 $150.00 $2,720.00 08/17/90 08/20/90 557 986 09/07/90 08/21/90 08/22/90 $5,423.00 08/30/90 08/30/90 08/03/90 1135 8945 3090 1329 766199 $(1,571.77) Less Cash $0.00 Correction of 8/27/90 Deposit $650.00 $1,000.00 James Morrow Joyce Lavrar/Terence Perry J.S.J. Pipeline Co. $720.00 $500.00 Richard Moneymaker Lowbed George Maciel Trucking Inc. $2,506.50 $2,506.50 $10.00 Alviso Rock Inc. Fireman's Fund Check Memos June Rent Refund July Rent AC Repair Yard Rent Rent Aug Rent August Rent Rent Rent Sleeper Rent Thanks Rent 8-20-90 to 10-30-90 Comments Less Cash Payable: Newark Truck & Body Payable: Tri-City Truck Parts Payable: Newark Truck & Body Payable: George Maciel Trucking Inc $(1,571.77) Payable: Newark Truck & Body THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1990 - 57 - Deposit Deposit Check Date Amount Check Date Number 09/14/90 09/25/90 10/05/90 10/17/90 10/31/90 12/13/90 12/19/90 08/17/90 08/24/90 $2,070.74 09/05/90 09/13/90 $1,214.32 09/14/90 09/16/90 09/14/90 09/21/90 $5,013.00 09/27/90 09/27/90 $4,795.39 10/16/90 10/13/90 10/06/90 09/21/90 10/04/90 10/05/90 10/12/90 10/08/90 $942.32 10/26/90 $3,203.00 11/30/90 12/07/90 12/06/90 $2,270.00 12/17/90 12/07/90 12/16/90 12/14/90 1081 1082 1124 1202 1107 186 1676 1684 1390 3210 609 1192 1228 4371 4000 1724 1730 1911 1746 4075 1942 12853 1784 1187 654 1188 12/31/90 TOTAL $693.02 $105,340.39 Check Amount $200.00 $200.00 $2,000.00 $70.74 $200.00 $72.00 $471.16 $471.16 $2,506.50 $2,506.50 $650.00 $600.00 $500.00 $900.07 $653.00 $471.16 $471.16 $550.00 $942.32 $653.00 $550.00 $2,000.00 $600.00 $400.00 $670.00 $600.00 $693.02 $105,340.39 Payor Check Memos Comments Less Cash Louis W. & Marion E. Bewley Louis W. & Marion E. Bewley Merced Rosales Mission Valley Diesel Louis W. & Marion E. Bewley Marilyn Michelet BAMA Equipment BAMA Equipment Alviso Rock Inc. George Maciel Trucking Inc. James Morrow G & S Paving Daniel Parquette L.R. Sellars Jr. Insurance Daniel Hernandez Jr. BAMA Equipment BAMA Equipment Piazza Mobil Sweeping BAMA Equipment Daniel Hernandez Jr. Piazza Mobil Sweeping P&C Auto Wreckers Inc. BAMA Equipment Louis W. & Marion E. Bewley James Morrow Louis W. & Marion E. Bewley Interest for Year Rent Rent Rent Rent Hood for Truck Payable: Newark Truck & Body Payable: Plymouth Inc. Payable: Alviso Rock Payable: Alviso Rock Payable to Alviso Rock Oct Rent RP End 90 Toyota P/U 4x4 Rent Phone Rent $(1,571.77) THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1991 - 58 - Deposit Date 01/03/91 02/06/91 02/20/91 02/21/91 03/13/91 03/28/91 04/04/91 04/10/91 04/26/91 Deposit Amount Check Date Check Number Check Amount $5,013.00 12/27/90 12/27/90 $5,552.12 01/11/91 01/31/91 01/18/91 01/25/91 01/24/91 $1,937.53 02/19/92 02/15/91 02/06/91 $5,502.43 02/06/91 02/19/91 $2,203.00 03/08/91 03/07/91 03/02/91 03/11/91 03/11/91 $3,924.95 03/12/91 03/08/91 03/24/91 $4,952.12 03/28/91 03/28/91 $2,350.00 04/09/91 04/09/91 $2,753.00 04/10/91 04/15/91 04/05/91 04/18/91 04/12/91 04/05/91 1710 3757 1225 1236 1226 3901 1776 699 251175006 4130 4484 4499 1264 9747 613 1982 4136 18455 6571 1275 1954 4153 1884 1992 4160 732 306 123 1294 1289 $2,506.50 $2,506.50 $200.00 $200.00 $200.00 $2,476.06 $2,476.06 $650.00 $634.53 $653.00 $4,777.43 $725.00 $400.00 $500.00 $100.00 $550.00 $653.00 $174.95 $2,350.00 $400.00 $1,000.00 $2,476.06 $2,476.06 $1,800.00 $550.00 $653.00 $650.00 $200.00 $850.00 $200.00 $200.00 Check Memos Comments Less Cash Jan 92 Jan ?? Jan ?? Rent Payable: Newark Truck & Body M.A.C. Contracting Inc. M.A.C. Contracting Inc. Payable: Newark Truck & Body Payable: Newark Truck & Body Feb 2&3 Payable: Newark Truck & Body Payor Alviso Rock, Inc. George Maciel Trucking Inc. Louis Bewley Louis Bewley Louis Bewley George Maciel Trucking Inc. Alviso Rock, Inc. James Morrow Leslie Salt Daniel Hernandez, Jr. Hawaiian Insurance Hawaiian Insurance Louis Bewley Richard Moneymaker Lowbed Larry Kauffman Piazza Mobil Sweeping Daniel Hernandez, Jr. Tax Collector, Alameda County 9213124 M.A.C. Contracting Inc Louis Bewley Unknown Alviso Rock, Inc. George Maciel Trucking Inc. #1 & #4 Payable: Newark Truck & Body Math Error? 3/28 DM of $1,000 BAMA Equipment Rent Jan Feb Mar 1991 Piazza Mobil Sweeping Daniel Hernandez, Jr. James Morrow Merced Rosales Rent Rent Lovett Excavating and Paving Pete Hood Louis Bewley Louis Bewley THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1991 - 59 - Deposit Date Deposit Amount Check Date Check Number Check Amount Payor Check Memos Comments Less Cash 05/06/91 05/09/91 05/21/91 06/04/91 06/13/91 07/09/91 $4,773.77 04/27/91 04/19/91 04/19/91 $2,271.96 05/06/91 05/06/91 05/01/91 $2,047.95 05/16/91 05/20/91 05/18/91 05/15/91 $9,394.92 05/23/91 06/04/91 05/27/91 05/31/91 05/30/91 05/30/91 $1,860.50 06/07/91 06/10/91 06/10/91 $1,353.00 07/05/91 07/01/91 08/05/91 $1,497.00 08/13/91 08/21/91 09/09/91 09/11/91 $1,000.00 08/03/91 08/02/91 $1,000.00 $6,443.92 08/29/91 08/29/91 08/30/91 $14,018.44 09/05/91 1306 3921 3922 26698 94 1338 751 1356 1316 33460 1933 2036 532 1322 161 2101 1477 1333 4202 10203 556 4207 568 1357 3030 3121 20912534 8054 $200.00 $3,203.77 $1,370.00 $221.96 $550.00 $1,500.00 $650.00 $975.00 $300.00 $122.95 $2,000.00 $550.00 $700.00 $200.00 $1,000.00 $2,472.46 $2,472.46 $200.00 $653.00 $1,007.50 $700.00 $653.00 $1,000.00 $497.00 $700.00 $300.00 $1,000.00 $2,472.46 $2,472.46 $1,499.00 $4,000.00 Louis Bewley Rent Winston Hill Assurance Co Ltd Winston Hill Assurance Co Ltd LMC Metals Piazza Mobil Sweeping Daniel Parquette James Morrow J.S.J. Pipeline Co. Louis Bewley Stewart Title of California BAMA Equipment Piazza Mobil Sweeping Ricky and Anna Flores Louis Bewley HG Trucking Alviso Rock, Inc. George Maciel Trucking Inc. Louis Bewley Daniel & Cecelia Hernandez Jr. Richard Moneymaker Lowbed Ricky and Anna Flores Daniel & Cecelia Hernandez Jr. Unknown Unknown Ricky and Anna Flores Louis Bewley Unknown Alviso Rock, Inc. George Maciel Trucking Inc. State of California M.A.C. Contracting Inc Payable: Valley Recycling Rent Rent May June July April May June Rent June Rent Advance Pmt Payable: Newark Truck & Body Returned ck 8/9 DM $1,000 Payable: Newark Truck & Body Rent Rent Tax Refund THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1991 - 60 - Deposit Date Deposit Amount Check Date 09/09/91 09/09/91 09/07/91 09/04/91 09/07/91 $5,500.00 09/13/91 $1,000.00 09/23/91 $4,951.25 09/26/91 09/26/91 09/24/91 10/08/91 10/08/91 11/06/91 $6,526.92 11/22/91 10/18/91 10/18/91 10/25/91 10/11/91 11/02/91 $2,797.43 11/16/91 11/01/91 11/08/91 12/03/91 12/31/91 TOTAL $5,615.12 $755.42 12/31/91 $106,995.75 Check Number 2557 2105 1881 960334 593 3431 1416 4983 2307 5207 3296 864 1401 1403 1396 177 5396 1632 168907 3470 1596 2174 Check Amount $8,000.00 $550.00 $500.00 $268.44 $700.00 $5,500.00 $1,000.00 $2,472.46 $2,478.79 $2,508.46 $2,508.46 $650.00 $200.00 $200.00 $200.00 $260.00 $442.43 $180.00 $150.00 $500.00 $975.00 $550.00 $5,615.12 $755.42 $106,995.75 Payor Check Memos Comments Less Cash S & P Truck & Trailer Repair Piazza Mobil Sweeping C.K. Transport County of Alameda Ricky or Ana M. Flores Yard Rent 1/2 Payment Pete Hood Rent Michel K. Pipes Martha J. Baroo Cummins ??? Engine Payable: Newark Truck & Body Daniel Parquette Aug & Sept Rent 0466 "Insuff Funds" - debit memo in acct George Maciel Trucking Inc. Alviso Rock, Inc. George Maciel Trucking Inc. Alviso Rock, Inc. James Morrow Louis Bewley Louis Bewley Louis Bewley G & G Express George Maciel Trucking Inc. Mission Valley Diesel Electric & Gas Industries Asso P.J. Vierra J.S.J. Pipeline Co. Piazza Mobil Sweeping Unknown Interest for the Year Rent Rent Rent Rent Gears Refrigerator Rebate Rent on Boscell Office Rent Oct, Nov, Dec Rent $0.00 THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1992 - 61 - Deposit Date Deposit Amount Check Date Check Number Check Amount Payor Check Memos 01/06/92 $512.35 02/06/92 $7,155.92 02/12/92 $2,953.00 02/26/92 $3,244.89 03/04/92 $6,241.17 03/13/92 $4,516.00 01/03/92 12/23/91 12/13/91 02/01/92 01/31/92 01/31/92 02/05/92 02/05/92 02/10/92 02/06/92 02/10/92 02/25/92 02/13/92 02/18/92 02/08/92 02/15/92 02/21/92 02/01/92 02/28/92 02/28/92 02/27/92 03/06/92 03/05/92 03/11/92 03/05/92 03/09/92 03/11/92 6651 1438 1429 1467 5617 2530 1710 2151 4359 1979 2268 216 6943 949 371 1473 1482 6954 3530 5727 2589 95687 1500 21350 1033 2290 3618 6695 $112.35 $200.00 $200.00 $1,200.00 $2,508.46 $2,472.46 $975.00 $1,500.00 $653.00 $250.00 $550.00 $500.00 $349.84 $650.00 $450.00 $200.00 $200.00 $395.05 $500.00 $2,472.46 $2,472.46 $1,296.25 $200.00 $168.00 $200.00 $550.00 $300.00 $3,098.00 Alviso Rock, Inc. Louis Bewley Louis Bewley Louis Bewley George Maciel Trucking, Inc. Alviso Rock, Inc. J.S.J. Pipeline Co. BAMA Equipment Daniel Hernandez Jr. Charles A. Lamb & Rose C. Lamb Piazza Mobil Sweeping Collette Krull Rent Rent Rent Office Rent Jan Feb Mar '92 Annual Yard Rent Robertson Trucking Service, Inc for Bett's Springs James Morrow San Jose Equipment Sales Louis Bewley Louis Bewley Robertson Trucking Service, Inc Rent Rent P.J. Vierra Rent on Boscell Rd George Maciel Trucking, Inc. Alviso Rock, Inc. North Carolina Occidental Fire Louis Bewley Von Euw & L.J. Nunes Trucking Steven M. Taylor Piazza Mobil Sweeping Michel K. Pipes Alviso Rock, Inc. All Claims Rent Rent Yard Rent DMV Comments Payable: Roger Balmeda Less Cash Payable: Newark Truck & Body Payable: Joe Gonzales Jr. Payable: Newark Truck & Body THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1992 - 62 - Deposit Date 03/25/92 Deposit Amount $4,250.00 Check Date 03/16/92 03/20/92 04/01/92 $5,614.36 04/07/92 $1,850.00 03/13/92 03/15/92 03/26/92 03/11/92 03/27/92 03/27/92 03/28/92 03/29/92 04/03/92 04/03/92 Check Number 1018 1512 9447 963 3634 61741206 2649 5859 1514 714 2022 1979 Check Amount $150.00 $200.00 $3,250.00 $650.00 $300.00 $369.44 $2,472.46 $2,472.46 $200.00 $400.00 $250.00 $1,000.00 Payor Pacific Water Truck & Equipment Louis Bewley MAC Contracting Inc. James Morrow Michel K. Pipes AT&T Alviso Rock, Inc. George Maciel Trucking, Inc. Louis Bewley Ricky or Ana Flores Charles Lamb Stockton Semi Trailer Inc. Check Memos Truck Steps Rent Rent Rent Paid in full Residence Service Refund Rent Rent 04/16/92 $5,832.69 04/08/92 52280 $2,850.00 F.B. Hart Co. Inc. The Travelers Complete & final Settlement Comments Less Cash Payable: Newark Truck & Body Payable: Newark Truck & Body Payable: George Maciel Trucking Inc 04/07/92 04/10/92 04/05/92 04/07/92 04/13/92 03/10/92 04/12/92 04/16/92 04/21/92 05/01/92 05/01/92 04/28/92 05/01/92 04/24/92 05/13/92 05/10/92 32060115 4395 2308 32060106 726 1522 611 5730 CM 6036 2723 738 1535 1530 1847 743 $1,484.26 $653.00 $550.00 $295.43 $200.00 $200.00 $100.00 $(500.00) $4,000.00 $2,481.96 $2,472.46 $400.00 $200.00 $200.00 $975.00 $200.00 04/21/92 05/07/92 $4,000.00 $5,754.42 05/15/92 $2,378.00 Daniel Hernandez Jr. Piazza Mobil Sweeping The Travelers Ricky or Ana Flores Louis Bewley Dad's Enterprises Cashier's Ck to Ann Miller Dad's Enterprises George Maciel Trucking, Inc. Alviso Rock, Inc. Ricky or Ana Flores Louis Bewley Louis Bewley J.S.J. Pipeline Co. Ricky or Ana Flores Yard Rent Settlement of Property Damage Payable: George Maciel Trucking Inc Rent Transfer Rent Rent Office Rent Rent $(500.00) THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1992 - 63 - Deposit Date Deposit Amount Check Date Check Number 06/04/92 $5,954.42 07/06/92 $7,949.48 08/04/92 $3,181.96 10/09/92 $8,710.79 10/21/92 $4,638.29 11/10/92 $1,525.00 05/10/92 05/12/92 05/29/92 05/29/92 06/01/92 06/15/92 06/12/92 06/05/92 07/03/92 06/26/92 06/11/92 06/26/92 06/23/92 06/26/92 07/31/92 07/27/92 07/10/92 07/17/92 10/02/92 09/24/92 10/01/92 09/25/92 10/01/92 10/02/92 10/07/92 10/15/92 10/11/92 10/15/92 11/04/92 11/06/92 4417 2319 2782 6210 95756 1033 1568 1567 1580 1577 2340 6415 60250008305 2849 6662 1587 1588 3077 22750409 838 1639 839 1641 7116 56812 3579 1093 2499 2064 Check Amount $653.00 $550.00 $2,472.46 $2,481.96 $1,000.00 $600.00 $200.00 $200.00 $200.00 $200.00 $550.00 $2,481.96 $1,045.06 $2,472.46 $2,481.96 $300.00 $200.00 $200.00 $2,478.79 $5,032.00 $700.00 $200.00 $100.00 $200.00 $2,488.29 $1,000.00 $500.00 $650.00 $550.00 $975.00 Payor Daniel Hernandez Jr. Piazza Mobil Sweeping Alviso Rock, Inc. George Maciel Trucking, Inc. Mike Flores James Morrow Louis Bewley Louis Bewley Louis Bewley Louis Bewley Piazza Mobil Sweeping George Maciel Trucking, Inc. Farmers Insurance Group Alviso Rock, Inc. George Maciel Trucking, Inc. Dad's Enterprises Louis Bewley Louis Bewley Alviso Rock, Inc. State of California Ana Flores Louis Bewley Ana Flores Louis Bewley Check Memos Comments Less Cash Payable: Ricardo Flores Payble: Alviso Rock Yard Rent Cashier's Check May Rent Rent Rent Rent Rent Yard Rent Rent on Yard Rent Rent Tax Refund Oct 92 Rent Rent Back Rent $40 Balance Rent George Maciel Trucking, Inc. Bank of Agriculture Cashier's Ck Rent Oct & Nov Linda Ventura James Morrow Piazza Mobil Sweeping J.S.J. Pipeline Co. Sept Rent Rent Yard Rent Office Rent THE BANK OF MILPITAS ACCOUNT 512-001-200593 "GEORGE A. MACIEL" DEPOSITS - 1992 - 64 - Deposit Date Deposit Amount Check Date Check Number Check Amount Payor Check Memos Comments Less Cash 12/07/92 $7,670.42 11/20/92 12/02/92 11/30/92 12/03/92 11/20/92 11/13/92 12/05/92 12/31/92 12/31/92 TOTAL $339.64 $94,272.80 1824 3208 2521 551 9484 1676 1675 879 $344.00 $2,508.46 $550.00 $650.00 $2,517.96 $200.00 $200.00 $700.00 $339.64 $94,272.80 Carlton Trucking Alviso Rock, Inc. Piazza Mobil Sweeping Margaret or Kelvin Deemer George Maciel Trucking, Inc. Louis Bewley Louis Bewley Ana Flores Interest for Year MC-2 Repair Payable: Newark Truck & Body Rent Dec Rent Rent Rent Bounced - 12/15/92 DM $(500.00) APPENDIX "B" THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1990 - 65 - Deposit Date 01/03/90 Deposit Amount $22,271.15 01/26/90 $4,903.06 01/26/90 02/14/90 $7,500.00 $22,004.93 02/28/90 $6,711.13 Check Date Check Number 01/02/90 12/22/89 12/27/89 12/29/89 12/27/89 01/25/90 01/25/90 01/19/90 02/09/90 02/09/90 08/25/89 02/07/90 01/26/90 02/02/90 02/09/90 02/23/90 02/25/90 5551 3895 1298 247 1983 10127 35286 12142 1332 3259 1667 2011 1321 1328 1331 2040 1355 2113 George Maciel Trucking Alviso Rock Inc Sutter Insurance Company Payor James Morrow Alviso Rock Inc George Maciel Trucking BAMA Equipment Check Amount $490.00 $1,024.15 $1,000.00 $10,000.00 $9,757.00 Atherton & Stevens Trust Acct $2,451.53 $2,451.53 $7,500.00 $15,000.00 $600.00 $4,447.40 $550.00 $147.09 $349.66 $349.66 $349.66 $211.46 $349.66 $2,451.53 George Maciel Trucking Piazza Mobil Sweeping George Maciel Trucking BAMA Equipment BAMA Equipment BAMA Equipment Taylor Leasing Inc. BAMA Equipment George Maciel Trucking BAMA Equipment George Maciel Trucking Comments Less Cash Check Memos Rent & Elect Reimburse for DMV Fees Shareholder Draw Arbitration Award Collision Loss '71 Freuhauf Payable: Alviso Rock Inc. Gonzalez February Rent Rent Yard Parts Parts Parts Parts Payable: Alviso Rock Payable: Fred Isit Payable: H. Gonzales Payable: Alviso Rock Payable: Alviso Rock Payable: Alviso Rock Payable: Gonzales Payable: Alviso Rock Payable: Alviso Rock Payable: George Maciel Trucking Inc 02/19/90 400270136 $3,909.94 Progressive Companies Time Property Damage and Down 03/19/90 $6,500.00 03/17/90 426 $13,000.00 Daniel Hernandez 1/2 deposited to acct $(6,500.00) 001-300431 "George P. Maciel" ($6,500.00) 03/20/90 05/09/90 $100,000.00 $5,473.98 03/20/90 04/27/90 04/30/90 05/05/90 04/27/90 CM 965 1057 151 1449 $100,000.00 $200.00 $250.00 $450.00 $357.66 Time Certificate of Deposit Louis Bewley Charles A. Lamb Daniel Estacio BAMA Equipment Home Rent Payable to Alviso Rock THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1990 - 66 - Payor Check Memos Comments Less Cash Payable to Alviso Rock Rent $(7,700.00) Deposit Date Deposit Amount Check Date 05/24/90 $6,317.00 06/11/90 $73,495.18 06/19/90 $15,000.00 07/02/90 $20,426.17 07/10/90 $4,050.00 07/18/90 07/24/90 07/26/90 09/07/90 09/14/90 $9,600.00 $9,700.00 $9,800.00 $7,500.00 $5,502.51 04/24/90 05/03/90 05/03/90 05/18/90 05/16/90 04/27/90 06/01/90 06/19/90 06/23/90 06/28/90 06/26/90 06/22/90 05/07/90 07/05/90 07/03/90 07/03/90 07/02/90 06/29/90 07/18/90 07/24/90 07/26/90 09/06/90 09/05/90 09/11/90 09/08/90 09/01/90 09/11/90 Check Number 46568 1461 1460 3145 249 179 4573 1392 2739 1569 4601 1027 2516 1585 1584 426 1040 2082 3981 1888 1207 1098 1673 Check Amount $2,616.32 $1,000.00 $600.00 $14,017.00 $(7,700.00) $47,495.18 $25,000.00 $1,000.00 $15,000.00 Grade-Way Construction BAMA Equipment BAMA Equipment US Treasury Cash Back Cashier's Ck Cashier's Ck Taco Bravo Travelers Checks $1,952.07 $2,474.10 Fleming Transport George Maciel Trucking $15,000.00 $1,000.00 $650.00 $800.00 $1,000.00 $600.00 $800.00 $200.00 $9,600.00 $9,700.00 $9,800.00 $7,500.00 $652.51 $550.00 $500.00 $200.00 $600.00 BAMA Equipment Taco Bravo Steve Giarusso Trucking Roy's Truck Painting BAMA Equipment BAMA Equipment Rex A. Hill Louis Bewley Currency Currency Currency Cashier's Ck Daniel Hernandez Piazza Mobil Sweeping Daniel Parquette Louis Bewley BAMA Equipment Rent 76 Ford Hood July Rent 1/2/ pymnt on … Sept Sept. Rent Rent Sept Rent 30 x $500 Payable: Newark Truck & Body Payable: George Maciel Trucking Bank of Milpitas 12249 $3,000.00 Sandman, Inc Star Concrete Invoice #102 Payable: Newark Truck & Body THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1990 - 67 - Deposit Date Deposit Amount Check Date Check Number Check Amount Payor Check Memos Comments Less Cash $4,502.00 American Business Ins Brokers $600.00 $200.00 $200.00 $1,000.00 BAMA Equipment Louis Bewley Louis Bewley Hillview Engineering Corp Oct Rent Rent Rent Advertising 09/25/90 10/05/90 $4,502.00 $6,261.70 10/12/90 10/23/90 $40,000.00 $1,600.00 11/01/90 11/01/90 11/14/90 $1,200.00 $5,013.00 $10,256.07 11/23/90 $5,592.32 09/11/90 10/04/90 09/28/90 09/21/90 10/05/90 09/24/90 09/28/90 08/25/89 09/02/90 10/12/90 10/23/90 64208 1722 1122 1121 1504 9050 1710 4085 4694 CM 10/20/90 1527 11/02/90 11/09/90 11/09/90 11/09/90 11/06/90 11/09/90 11/09/90 11/07/90 10/17/90 11/10/90 11/01/90 11/10/90 11/16/90 11/13/90 1149 1161 630 1928 1400 1760 1203 4065 3048 5477 347 1255 1767 4811 BAMA Equipment George Maciel Trucking Unknown Taco Bravo Unknown Unknown Unknown Unknown $500.00 Richard Moneymaker Lowbed $471.16 $2,290.54 $1,000.00 $40,000.00 $1,200.00 $200.00 $200.00 $1,200.00 $5,013.00 $200.00 $200.00 $650.00 $550.00 Louis Bewley Louis Bewley James Morrow Hillview Engineering Corp Piazza Mobil Sweeping $1,400.00 $1,000.00 $975.00 $653.00 $1,000.00 Alan Hosking BAMA Equipment J.S.J. Pipeline Co. Daniel Hernandez Money Order $2,428.07 Wesley E. Bassett Trucking $1,200.00 $500.00 $942.32 $1,000.00 Daniel Parquette BAMA Equipment Taco Bravo Jeff Varnel Payable: George Maciel Trucking Inc Payable to Newark Body Shop Payable to Fred Isit ABA 11-35 ABA 11-57 ABA 11-57 "Insuff Funds" - ck bounced Rent Rent 125 Northgate Payable: George Maciel Trucking Inc Rent Office Nov Dec Jan 89 Pete Cab Nov Rent Payable to John Alves Payable: Newark Truck & Body BofA Money Order Payable: Alviso Rock THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1990 - 68 - Deposit Date Deposit Amount Check Date 11/27/90 $2,800.00 12/06/90 $7,443.29 12/13/90 $67,256.00 11/21/90 11/21/90 11/26/90 11/26/90 09/03/90 11/29/90 11/29/90 11/29/90 12/03/90 11/13/90 11/19/90 Check Number 566 5818 1171 1172 38433 1269 3574 1561 21258 35455 2198795 Check Amount $3,000.00 $150.00 $400.00 $200.00 Payor Lavrar Trucking George Maciel Trucking Louis Bewley Louis Bewley Adriatic Insurance Company $2,200.00 $500.00 $2,506.50 $2,506.50 $1,500.00 Contract Transportation Service Alviso Rock Inc Daniel Parquette George Maciel Trucking $430.29 Granite Rock $67,256.00 Transamerica Insurance Group 12/19/90 $8,644.10 12/10/90 400716766 $8,644.10 Progressive Companies Legal Billing 12/27/90 $3,594.14 12/19/90 65686 $1,310.14 CNA Insurance Companies Repairs/Downtime 12/31/90 TOTAL $15,606.29 $516,524.02 12/21/90 12/21/90 12/31/90 5534 2453 $1,034.00 $1,250.00 $15,606.29 $516,524.02 Edron Towing and Recovery Repair #65 Front End Body Michael Mitchem Interest for the Year Interest on Loan $(14,200.00) THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1991 Deposit Date Deposit Amount Check Date Check Number Check Amount Payor Check Memos Comments Less Cash 01/08/91 $3,016.79 12/31/90 15172 $3,016.79 Jess' Trucking Inc. 01/17/91 $3,690.92 01/08/91 01/08/91 01/11/91 3552 1952 6095 $850.51 $550.00 $587.41 George Maciel Trucking Inc. Osborne Lumber Co. Inc. Piazza Mobil Sweeping 0243 Payable: Newark Truck & Body Payable: Newark Truck & Body Comments Loan Payable: Cash Less Cash Check Memos Rent Rent Collision-Final Replacing 38204 Rent Dec Payable: Alviso Rock Inc. Payable: Alviso Rock Payable: George Maciel Trucking Payable: George Maciel Trucking Payable: Newark Truck & THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1991 - 69 - Deposit Date Deposit Amount Check Date 01/05/91 01/16/91 12/31/90 01/04/91 02/14/91 $10,074.02 02/11/91 12/21/90 02/01/91 02/09/91 02/07/91 02/08/91 02/08/91 $10.00 02/25/91 $5,142.12 02/08/91 02/21/91 $13,900.00 02/25/91 02/24/91 02/25/91 02/25/91 02/25/91 02/25/91 02/25/91 03/01/91 $5,345.80 02/14/91 02/26/91 Check Number 4116 672 1209 1210 2543 1236 4480 1289 1971 606 14124 1249 1847 1842 1308 1846 1841 9645 1349 $11,300.00 BAMA Equipment $1,000.00 Richard Moneymaker Lowbed Payment on #0240 Body $90.00 Mission Valley Diesel Payable: Newark Truck & 02/27/91 12831 $2,017.01 Ben Salamoni Trucking Service 02/27/91 48153214 $429.39 Wausau Insurance Co. 03/28/91 02/21/91 $12,378.57 03/19/91 03/25/91 11027 716 $1,809.40 $650.00 $6,250.00 Circo Recyclers James Morrow Marcelo Rodriguez Jr. Supplement to Repair Inv Payable: Newark Truck & Payable: Newark Truck & Body #0246 Rent Body Payable: Newark Truck & Body Check Amount $653.00 $650.00 $200.00 $200.00 Payor Daniel Hernandez Jr. James Morrow Louis Bewley Louis Bewley Check Memos Comments Less Cash Rent Jan #1 $384.25 Salinas Trucking Repair Left Front ?? & Paint Body Payable: Newark Truck & $1,000.00 Ken Ash dba Kens Trucking Payable: Newark Truck & Body Payable: Newark Truck & Hawaiian Insurance Group MAC Contracting Body J.S.J. Pipeline Co. Office Rent Feb, Mar, Apr $5,067.57 $975.00 $550.00 $1,500.00 $597.20 $0.00 $200.00 $2,476.06 $2,476.06 $1,000.00 $1,000.00 $600.00 Piazza Mobil Sweeping Lavrar Trucking LMC Metals Deposit Correction Louis Bewley Alviso Rock Inc. Unknown BAMA Equipment Daniel Parquette BAMA Equipment February Repairs Mack Rent Feb October 1990 Dec 1990 Reimburse Reliance End Dump THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1991 - 70 - Deposit Date 04/22/91 Deposit Amount Check Date 03/25/91 $4,000.00 04/22/91 Check Number 904802 CM Check Amount $5,478.57 State Farm Mutual Auto Ins. $4,000.00 Reversal of 4/19/91 Transfer Payor Check Memos Property Damage 04/26/91 $15,081.35 04/08/91 336113 $3,228.20 Guaranty National Ins co. Claim for Rodriguez Trkg 04/17/91 04/09/91 04/04/91 04/25/91 $3,721.86 04/09/91 $1,428.00 6800 40697 4142 2023 4297 40697 $2,277.50 $3,721.86 Adriatic Insurance Company MAC Contracting Inc. Osborne Lumber Co. Inc. $901.67 $2,476.06 $2,476.06 George Maciel Trucking Inc. $3,721.86 Adriatic Insurance Company $1,428.00 Alviso Rock Inc. Unknown $8,250.00 06/07/91 $7,853.78 06/25/91 7250 1325 $8,250.00 $392.78 $7,461.00 MAC Contracting Inc. Ken Ash dba Kens Trucking Unknown 05/09/91 06/10/91 06/13/91 07/02/91 Comments Less Cash Payable: Dale Hinson & Newark Truck & Body Payable: Newark Truck & Body Payable: Alviso Rock Inc. Payable: Newark Truck & Body Collision Final 0258 Collision Final Redeposit of above Payable: Newark Truck & Body 07/09/91 $800.00 07/02/91 6838 $800.00 George Maciel Trucking Inc. DiSalvo Loan 07/09/91 07/18/91 $40,000.00 06/28/91 06/28/91 $4,332.25 07/09/91 07/16/91 07/12/91 07/16/91 07/05/91 07/12/91 08/05/91 $7,344.92 08/13/91 $8,050.00 08/09/91 08/08/91 08/02/91 991463 2062 1424 126 792 1348 6484 1778 2086 1357 $42,887.00 $(2,887.00) $550.00 $975.00 $100.00 $650.00 $200.00 $857.25 $1,000.00 $7,344.92 $500.00 $550.00 $300.00 Republic Indemnity Less Cash Piazza Mobil Sweeping J.S.J. Pipeline Co. Collette M. Krull James Morrow Louis Bewley Heavy Metal Express Unknown Unknown Pacific Water Truck & Equipment Piazza Mobil Sweeping Louis Bewley 3/4/89 to 3/4/90 Payable: George Maciel Trucking ($2,887.00) Office Rent 8-9 8-10-91 Loan Payable: Newark Truck & Body 18 Farm Lane Rent Yard Rent THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1991 - 71 - Deposit Date Deposit Amount Check Date 08/03/91 Check Number 568 08/21/91 09/09/91 $3,274.06 $1,679.00 07/19/91 09/03/91 1498 2048 Check Amount $700.00 $6,000.00 $3,274.06 $79.00 $600.00 $1,000.00 09/24/91 $16,241.00 09/09/91 09/13/91 110752 $1,615.30 $11,613.00 Payor Ricky or Ana M. Flores Check Memos Rent Comments Less Cash Unknown Unknown Mission Valley Diesel BAMA Equipment Unknown USPCI Sept Rent Payable: George Maciel Trucking United States Treasury Tax Refund 09/23/91 09/06/91 09/20/91 09/13/91 09/02/91 09/16/91 $4,600.70 10/05/91 09/23/91 09/21/91 10/04/91 10/08/91 11/22/91 10/04/91 $4,992.53 11/18/91 1416 1376 1864 1383 4033 836 611 1626 1895 938 1874 894 12/03/91 12/16/91 $7,286.68 11/12/91 $2,940.60 12/01/91 10015 3491 11/01/91 12/12/91 12/06/91 $10,678.72 12/27/91 12/30/91 6806 1125 1422 2443 Daniel Parquette Louis Bewley $1,000.00 $200.00 $310.00 Paul R & Marianne Bourgeois $200.00 $653.00 $650.00 $700.00 $950.00 Cook's Peninsula Pools Inc. $500.00 $600.00 Ricky or Ana M. Flores Daniel Hernandez Jr. C.K. Transport Mary Griffin Louis Bewley James Morrow $1,850.70 $650.00 $4,342.53 Pacific Water Truck & Equipment James Morrow Unknown Aug & Sept Rent DM May have bounced - 10/1 Rent Rent Rent Rent 155 Tobin Clark, Hillsboro Final Payment for Pete Hood Pool Water Inv. #0271 Rent Payable to Newark Truck & Body $7,286.68 John Deere Insurance Company cl Any and all property damage $500.00 P.J. Vierra Rent on Boscell Dec. Supplemental Payment $2,200.60 Calfarm Insurance Company Collision Payable: Newark Truck & Body Payable: Newark Truck & $40.00 $200.00 $2,508.46 Gerardo Ozuna Louis Bewley Alviso Rock Inc. Ozuna Trucking Parts-Step Body Rent THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1991 Deposit Date Deposit Amount Check Date 12/27/91 12/27/91 12/23/91 12/20/91 Check Number 5440 4055 21065 1848 Check Amount - 72 - Payor $2,508.46 George Maciel Trucking Inc. $250.00 Sines Trucking Company, Inc. $2,329.86 Von Euw & L.J. Nunes Trucking Check Memos Comments Less Cash Yard Rent Space $500.00 Stockton Semi Trailer Inc. Rent 12/17/91 911 $88.94 Ferma Corporation Balance on Hood repair Body Payable: Newark Truck & 12/16/91 12/14/91 12/30/91 12/31/91 12/31/91 TOTAL 12/20/91 $20,000.00 12/30/91 $3,095.55 12/31/91 $12,034.25 12/31/91 $241,243.47 640 4306 22228 CM $1,600.00 $653.00 Ferma Corporation Daniel Hernandez Jr. General Motors Acceptance Corp Telephonic Transfer Regular Interest for Year TCD Interest for Year $240.00 $20,000.00 $3,095.55 $12,034.25 $241,243.77 THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1992 Job 2989 Payable: Newark Truck & Body Payable: Newark Truck & Body From BM 0593 ($2,887.00) Comments Less Cash Deposit Date 01/23/92 02/06/92 Check Date Deposit Amount $3,053.00 01/10/92 01/15/92 01/17/92 01/15/92 01/11/92 01/11/92 $8,113.06 02/04/92 01/28/92 01/29/92 02/01/92 01/31/92 01/07/92 Check Number 2235 1888 676 932 4338 667 271003216 1378 1157 3057 1464 621 Check Amount $550.00 $500.00 $200.00 $650.00 $653.00 $500.00 $13,000.00 Payor Piazza Mobil Sweeping Stockton Semi Trailer Ricky or Ana Flores James Morrow Daniel Hernandez Ricky or Ana Flores Check Memos Yard Rent Dec Rent Rent Rent Rent David Mitchem Wells Fargo Cashier's Check Payable: David Mitchem $125.00 Analytical Maintenance Service $175.34 Gerardo Ozuna Hood Ozuna Trucking Body Payable: Newark Truck & $200.00 $200.00 $12.72 Cirimeless Construction Peterbuilt Fender Body Payable: Newark Truck & Louis Bewley John & Annette Strong Rent THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1992 - 73 - Check Number Check Amount Payor Steven Taylor $200.00 $700.00 $(6,500.00) $100,000.00 Balance from COD #001291269 Ricky or Ana Flores Less Cash Check Memos Money Owed Comments Less Cash Bounced - 2/14/92 DM $(6,500.00) Deposit Date Deposit Amount Check Date 01/25/92 02/07/92 03/03/92 03/04/92 $100,000.00 03/03/92 $4,821.00 03/03/92 03/02/92 03/02/92 02/26/92 03/03/92 03/02/92 02/29/92 03/04/92 $136,945.68 03/03/92 04/24/92 05/15/92 06/03/92 06/04/92 $1,940.00 04/15/92 04/20/92 04/15/92 04/17/92 $7,657.22 03/20/92 $100,000.00 06/03/92 $1,625.00 05/13/92 05/22/92 05/22/92 05/29/92 05/15/92 05/08/92 06/12/92 $1,972.66 1007 685 CM 8153 4373 700 1954 1965 701 1494 5437 20417 0567 978 1526 8140454 CM 124210 2174 1547 1548 1544 1543 1014 Payable: Newark Truck & Body Payable: Newark Truck & Body $2,449.00 George Maciel Trucking Inc. DMV $653.00 $700.00 $369.00 $250.00 $200.00 $200.00 Daniel Hernandez Ricky or Ana Flores Valley Recycling Charles Lamb Ricky or Ana Flores Louis Bewley Feb 92 Rent 2 Doors March Rent 92 Rent Cashier's Ck to Santa Clara Title "Not used for intended $136,945.68 Co D. Hill Trucking $890.00 $200.00 Alameda Truck Parts & Equip $650.00 $200.00 $7,657.22 $100,000.00 California Land Title Co. Balance from #01-201318 James Morrow Louis Bewley Valley Recycling $325.00 Trammell Crow Residential Serv $500.00 $200.00 $200.00 $200.00 $200.00 $650.00 Louis Bewley Louis Bewley Louis Bewley Louis Bewley James Morrow purpose" Invoice 0280 Rent Rent Escrow No. 331486-LM Rent Rent Rent Rent 06/05/92 19680 $1,322.66 D. Hill Trucking Payable: Newark Truck & Body THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1992 - 74 - Deposit Date 7/23/92 08/04/92 08/05/92 08/25/92 09/08/92 Check Date Deposit Amount $9,144.50 07/13/92 07/04/92 07/06/92 07/10/92 07/15/92 07/02/92 06/27/92 07/14/92 $57,472.00 07/31/92 $975.00 08/05/92 $15,479.01 08/18/92 08/07/92 08/13/92 08/05/92 08/11/92 08/17/92 08/10/92 $7,981.78 07/25/92 09/02/92 09/04/92 08/28/92 08/27/92 08/21/92 09/04/92 08/26/92 09/03/92 Check Number 2375 24543668 758 4466 1050 1684 46949 25130367 996887 1931 102489409 2938 12064 2405 25099 1066 4493 6574 2435 2069 2998 3 1611 1622 2581 814 Check Amount $550.00 $672.00 $700.00 $653.00 $650.00 $2,000.00 Payor Piazza Mobil Sweeping State of California Ana Flores Daniel Hernandez James Morrow Truck Trailer Sales, Inc. $49.50 Washington Hospital Healthcare $3,870.00 $57,472.00 $975.00 Ritchie Bros. Republic Indemnity J.S.J. Pipeline $10,636.37 State Farm Mutual Auto Insur $2,472.46 Alviso Rock, Inc. Comments Less Cash Payable: Felix Dominguez Check Memos Yard Rent EDD Rent Policy Workers Comp Payable: Alviso Rock Office Rent July-Sept 92 Property Damage Liability Body Payable: Newark Truck & Piazza Mobil Sweeping $500.00 Richard Money Maker Lowbed $550.00 $17.18 $650.00 $653.00 Daniel Hernandez James Morrow PG&E Alviso Rock, Inc. Piazza Mobil Sweeping Mission Valley Diesel $728.19 George Maciel Trucking Inc. $550.00 $72.00 $2,472.46 $100.00 $200.00 $200.00 $277.00 $700.00 Louis Bewley Louis Bewley Scott Balcon Ana Flores Dad's Payable: Newark Truck & Body Payable: Moneymaker Lowbed On Account Rent Refund Account Rent Rent Rent Rent Sept Rent THE BANK OF MILPITAS ACCOUNT 512-001-300466 "GEORGE A. MACIEL" DEPOSITS - 1992 - 75 - Deposit Date Deposit Amount Check Date Check Number Check Amount Payor Check Memos Comments Less Cash 09/01/92 08/28/92 $18,398.00 09/12/92 09/11/92 09/11/92 09/16/92 $20,705.67 10/13/92 10/09/92 $4,628.46 11/02/92 11/04/92 10/29/92 10/23/92 10/30/92 $2,892.90 12/09/92 $3,096.07 12/31/92 $2,593.82 12/31/92 $509,494.83 09/23/92 10/21/92 11/05/92 12/10/92 12/31/92 12/31/92 TOTAL 1709 6882 4534 1631 1078 1135 134 533 864 1020 1649 3140 3065 $200.00 Carlton Trucking Pete Front Bumper Body Payable: Newark Truck & $2,481.96 George Maciel Trucking Inc. $0.17 $653.00 $200.00 $16,895.00 $650.00 Deposit Correction Daniel Hernandez Louis Bewley United States Treasury James Morrow Dennis Ponte, Inc Margaret or Kelvin Deemer $10,381.17 First American Title Insurance $10,324.50 $1,000.00 $700.00 $220.00 $200.00 $2,508.46 $2,892.90 $3,096.07 $2,593.82 $509,494.83 Dean and Suzanne Mack Regular Interest for Year TCD Interest for Year Ana Flores Dad's Enterprises Louis Bewley Alviso Rock, Inc. That's All Folks! Thank You Rent Tax Refund Rent Escrow No. 208810AM Rent + $350 Back Pay Rent Nov Rent $(6,500.00) - 76 - APPENDIX "C" THE BANK OF MILPITAS ACCOUNT 512-001-303171 "G M INVESTMENTS" DEPOSITS - 1991 Deposit Date Deposit Amount Check Date Check Number Check Amount Payor Check Memos Comments Transfer from 001-3-1856 (per sig 06/04/91 06/05/91 06/10/91 07/09/91 07/18/91 08/13/91 09/06/91 09/09/91 10/08/91 10/16/91 12/31/91 TOTAL $1,568.38 $8,900.00 $250.00 $8,650.00 $500.00 $8,900.00 08/01/91 08/02/91 $12.00 09/06/91 $8,900.00 09/01/91 09/05/91 $9,100.00 10/01/91 10/01/91 09/27/91 $2,903.00 10/07/91 10/09/91 10/11/91 10/10/91 $127.69 12/31/91 $49,811.07 3418 20618 DM 3439 10787 20947 3455 1389 2134 1391 1428 4005 $1,568.38 $8,400.00 $500.00 $250.00 $8,650.00 $500.00 $500.00 $8,400.00 Unknown Unknown Unknown Unknown Unknown Unknown P J Vierra P.S.B. Trucking Inc P J Vierra P J Vierra Louis W. Bewley P.S.B. Trucking Inc P.S.B. Trucking Inc $12.00 Reversal of Ck Charge $500.00 $8,400.00 $8,400.00 $500.00 $200.00 $550.00 $200.00 $1,500.00 $653.00 $127.69 $49,811.07 Daniel T. Parquette Daniel Hernandez Interest for the Year Piazza Mobil Sweeping Louis W. Bewley card) ABA 90-19 ABA 90-785 Aug Rent Boscell Rent Boscell Sept Rent Oct Boscell Rent OOPS Payable to GM Investments Payable to M&G Investments ck bounced THE BANK OF MILPITAS ACCOUNT 512-001-303171 "G M INVESTMENTS" DEPOSITS - 1992 - 77 - Deposit Date 01/06/92 Deposit Amount Check Date $9,150.00 12/27/91 01/01/92 01/02/92 Check Number 21465 3509 1921 01/23/92 02/06/92 02/12/92 03/06/92 04/07/92 05/07/92 05/15/92 06/04/92 06/12/92 07/06/92 07/09/92 07/23/92 Check Amount Payor Check Memos Comments P.S.B. Trucking Inc. $8,400.00 $500.00 $250.00 Charles and Rose Lamb PJ Vierra Robertson Trucking Service $2,493.20 $1,813.00 John Deere Insurance Co. $8,400.00 $600.00 $3,500.00 P.S.B. Trucking Inc. George A. Maciel Louis Bewley PJ Vierra $500.00 Stockton Semi Trailer Inc $500.00 $8,400.00 $8,400.00 $500.00 $8,400.00 P.S.B. Trucking Inc. P.S.B. Trucking Inc. P.S.B. Trucking Inc. PJ Vierra $250.00 Charles and Rose Lamb $100.00 $8,400.00 Dad's Enterprises P.S.B. Trucking Inc. $250.00 Charles and Rose Lamb Daniel and Cecelia Hernandez $653.00 $500.00 Piazza Mobil Sweeping $500.00 $8,400.00 P.S.B. Trucking Inc. PJ Vierra Rent on Boscell Payable to M & G Investments Insurance claim Payable to M & G Investments from acct 300466 Payable to M & G Investments Payable to M & B Investments Payable to M & B Investments Payable to GM Investments Rent Rent R.O. 9 Rent Engine 5 Rent Boscell June Payable to GM Investments $4,306.20 01/15/91 12/30/91 $9,000.00 02/03/92 01/24/92 $3,500.00 02/10/92 $9,400.00 03/03/92 03/06/92 03/03/92 $8,400.00 04/02/92 $8,900.00 05/01/92 05/07/92 $350.00 05/07/92 05/11/92 $8,400.00 06/01/92 $903.00 06/02/92 06/06/92 $1,000.00 06/26/92 06/01/92 $8,650.00 07/06/92 6892 485 21690 1454 180 1952 3548 21859 22003 3595 22180 2033 628 22351 2094 4433 2351 3609 22567 06/30/92 4277 $250.00 Inc. Rent Sines Trucking Company $1,364.00 07/15/92 07/01/92 2653 3627 $614.00 $500.00 order PJ Vierra Bank of West money Payable to Newark Truck & Body THE BANK OF MILPITAS ACCOUNT 512-001-303171 "G M INVESTMENTS" DEPOSITS - 1992 - 78 - Deposit Date Deposit Amount Check Date Check Number 07/08/92 2116 Check Amount Payor $250.00 Charles and Rose Lamb Richard Moneymaker Check Memos July (92) Comments 08/04/92 08/05/92 08/05/92 08/25/92 09/08/92 09/23/92 10/09/92 10/21/92 11/05/92 11/10/92 12/07/92 12/31/92 TOTAL $500.00 07/24/92 $800.00 08/01/92 $8,400.00 07/29/92 $750.00 08/01/92 08/11/92 $9,150.00 09/01/92 09/02/93 09/01/92 $300.00 09/17/92 $9,400.00 10/05/92 11966 775 22682 3656 2220 3671 2245 22886 162 23116 $550.00 10/13/92 10/14/92 2481 2479 $8,400.00 $750.00 $9,250.00 12/01/92 $312.07 12/31/92 23543 $121,885.27 P.S.B. Trucking Inc. $500.00 $800.00 $8,400.00 $500.00 $250.00 Charles and Rose Lamb $500.00 $250.00 Charles and Rose Lamb PJ Vierra Lowbed Ana M. Flores PJ Vierra $8,400.00 $300.00 $8,400.00 $1,000.00 P.S.B. Trucking Inc. Ross Hamilton P.S.B. Trucking Inc. Unknown $50.00 Piazza Mobil Sweeping $500.00 Piazza Mobil Sweeping $8,400.00 $750.00 $850.00 $8,400.00 $312.07 $121,885.27 Unknown Unknown Unknown P.S.B. Trucking Inc. Interest for the Year Payable to Newark Body Shop Payable to GM Investments Payable to GM Investments Payable to GM Investments Rent Rent Boscell Aug Rent 41550 Boscell Rent Boscell Sep Rent Payable to GM Investments APPENDIX "D" THE BANK OF MILPITAS ACCOUNT 512-001-102605 "ALVISO ROCK/HK RACING" DEPOSITS - 1990 - 79 - Deposit Date Deposit Amount Check Date Check Number 04/17/90 04/30/90 05/07/90 05/18/90 06/19/90 07/10/90 07/10/90 07/26/90 08/06/90 08/15/90 09/14/90 09/25/90 $500.00 04/14/90 $2,493.59 04/27/90 $1,525.00 05/03/90 04/18/90 $2,055.00 05/17/90 05/17/90 $1,505.00 06/06/90 06/18/90 06/14/90 06/19/90 $500.00 07/10/90 $2,010.00 07/06/90 $1,960.00 07/26/90 07/24/90 07/05/90 $210.00 07/15/90 $715.00 07/24/90 $1,000.00 09/14/90 09/06/90 $850.00 09/18/90 09/07/90 09/13/90 10/23/90 $975.00 11/08/90 11/23/90 12/27/90 TOTAL $30.00 11/08/90 $131.75 11/23/90 $351.23 11/29/90 $16,811.57 1282 522 6202 3707 4735 1493 3822 6240 4929 1539 CM 6247 5166 19888 4102 4163 1277 1918 1681 2255 2319 68619 Check Amount $500.00 $2,493.59 $1,025.00 $500.00 $855.00 $1,200.00 $25.00 $545.00 $335.00 $600.00 $500.00 $2,010.00 $750.00 $1,160.00 $50.00 $210.00 $715.00 $300.00 $700.00 $750.00 $50.00 $50.00 $500.00 $475.00 $30.00 $131.75 $351.23 $16,811.57 Payor Hillview Engineering Corp George Maciel Alviso Rock Inc BBA, Inc. NASCAR Fund Trustee George Maciel Trucking Inc. Check Memos #69 Advertising Closing of Account BAMA Equipment Race #4,5,6,7,8 & 9 Northern Auto Racing Club Inc Alviso Rock Inc George Maciel Trucking Inc. Advertisement #69 No Deposit Ticket Sprint Car #69 Sponsorship Sponsor BAMA Equipment Deposit Correction Alviso Rock Inc BAMA Equipment George Maciel Trucking Inc. Jack McCoy Enterprises Northern Auto Racing Club Inc Northern Auto Racing Club Inc George A. Maciel High-Five Pizza Co. BAMA Equipment BBA, Inc. NASCAR Fund Trustee BBA, Inc. NASCAR Fund Trustee Unknown Unknown Reversal of Service Charge George A. Maciel Awards & Achievement Bureau Comments from WF 384835 Payable to Alviso Rock/HK Racing Payable to Howard Kaeding Payable to Alviso Rock/HK Racing Payable to Howard Kaeding Payable to Alviso Rock/HK Racing Payable to Alviso Rock/HK Racing Payable to Alviso Rock/HK Racing Payable to Alviso Rock/HK Racing Payable to Alviso Rock/HK Racing Payable to Alviso Rock/HK Racing Payable to Howard Kaeding Payable to Howard Kaeding Payable to Howard Kaeding from acct 200593 Payable to Alviso Rock/HK Racing Payable to Alviso Rock Payable to Alviso Rock ABA 90-4176 ABA 11-35 from acct 300466 Payable to Howard Kaeding THE BANK OF MILPITAS ACCOUNT 512-001-102605 "ALVISO ROCK/HK RACING" DEPOSITS - 1991 - 80 - Deposit Date 04/04/91 04/04/91 04/10/91 04/30/91 05/28/91 05/29/91 06/11/91 07/02/91 07/09/91 08/05/91 08/13/91 08/21/91 09/09/91 09/24/91 11/06/91 12/16/91 Deposit Amount Check Date Check Number $12.00 04/04/91 $1,408.00 04/04/91 03/30/91 03/21/91 $590.00 $245.00 $12.00 05/28/91 $1,500.00 $1,310.00 $1,560.00 $1,060.00 $600.00 $500.00 08/13/91 $1,600.00 $2,000.00 09/07/91 $360.00 09/11/91 $90.00 10/15/91 $1,550.00 12/11/91 12/07/91 12/12/91 CM 1430 1602 2248 CM CM 1056 163 15150 6514 2195 634 1192 TOTAL $14,397.00 Check Amount $12.00 $310.00 $98.00 $1,000.00 $590.00 $245.00 $12.00 $1,500.00 $1,310.00 $1,560.00 $1,060.00 $600.00 $500.00 $1,600.00 $2,000.00 $360.00 $90.00 $550.00 $700.00 $300.00 $14,397.00 Payor Reject Charge Rev. George A. Maciel Robin Parden High-Five Pizza Co. Currency Currency Reject Charge Rev. Phone Transfer Unknown Unknown Currency Unknown GM Investments Unknown George A. Maciel Check Memos Comments Terry NASCAR Sponsorship from acct 200593 Payable to Alviso Rock Racing 10x$50 3x$20 2x$10 10x$1 from acct 300466 ABA 11-35 Sprint from acct 3171 California Racing Association Northern California Racing Club Piazza Mobil Sweeping Ricky or Ana M. Flores Gradetech Inc Dec Rent Headlights for #203 Payable to George Maciel/Alviso Rock THE BANK OF MILPITAS ACCOUNT 512-001-102605 "ALVISO ROCK/HK RACING" DEPOSITS - 1992 Deposit Date 02/12/92 04/07/92 Check Date Deposit Amount $3,500.00 02/10/92 $7,700.00 04/03/92 Check Number 1077 3465 Check Amount $3,500.00 $200.00 Payor Check Memos GM Investments Advertising Sprint Car Comments from acct 303171 Less Cash West Coast Aggregates Inc. Payable to Alviso Rock/HK Racing THE BANK OF MILPITAS ACCOUNT 512-001-102605 "ALVISO ROCK/HK RACING" DEPOSITS - 1992 - 81 - Deposit Date Deposit Amount Check Date Check Number 04/24/92 05/07/92 05/15/92 06/04/92 06/12/92 07/06/92 07/23/92 08/04/92 08/25/92 09/08/92 09/23/92 10/09/92 11/05/92 04/07/92 $950.00 04/16/92 04/01/92 $740.00 05/07/92 $621.00 12/31/91 05/09/92 $530.00 05/21/92 05/18/92 $861.00 06/05/92 06/08/92 $814.00 06/08/92 06/25/92 $350.00 07/13/92 07/08/92 $820.00 07/29/92 $1,415.00 07/31/92 07/24/92 08/14/92 08/07/92 08/25/92 $1,550.00 09/02/92 08/28/92 $200.00 09/18/92 $325.00 09/19/92 09/19/92 09/17/92 $2,517.96 10/30/92 184 8946 3563 1895 4930 2207 7159 9440 7346 3652 397 7590 3757 2422 1600 1599 1607 3508 1069 1618 1632 23995 23929 3947 7311 San Jose Commercial Tire PJ Vierra Alviso Rock Inc. Less Cash Cars Inc. Mary Sue Schriver Payor George A. Maciel Currency Cars Inc. Currency Check Amount $7,500.00 $450.00 $500.00 $900.00 $(160.00) $410.00 $36.00 $175.00 $210.00 $100.00 Northern Auto Racing Club Inc $220.00 $600.00 $100.00 Northern Auto Racing Club Inc $161.00 $200.00 $614.00 $150.00 Northern Auto Racing Club Inc $200.00 West Coast Aggregates Inc. $820.00 $200.00 $200.00 $200.00 $500.00 $315.00 $1,350.00 $200.00 $200.00 $75.00 $50.00 $200.00 $2,517.96 Louis Bewley Louis Bewley Louis Bewley Linda Ventura West Coast Aggregates Inc. George Maciel Trucking Inc West Coast Aggregates Inc. San Jose Equipment Sales Silver Dollar Speedway Silver Dollar Speedway San Jose Commercial Tire Currency Louis Bewley Louis Bewley San Jose Commercial Tire Currency Cars Inc. Check Memos Rent on Boscell April IH 9370 Hood Comments from acct 300466 Less Cash Payable to Alviso Rock/HK Racing Payable to Howard Kaeding $(160.00) Payable to Alviso Rock Payable to George Maciel/Alviso Rock Payable to HK Racing Payable to George Maciel/Alviso Rock Payable: Alviso Rock/HK Racing Payable: Newark Truck & Body/Bounced Payable to George Maciel/Alviso Rock Payable to George Maciel/Alviso Rock Payable to Alviso Rock #291 Repairs Rent Rent Rent Aug. Rent June, July, Aug Payable to Alviso Rock/HK Racing Rent Rent E Main F Main Payable to Alviso Rock/HK Racing - 82 - THE BANK OF MILPITAS ACCOUNT 512-001-102605 "ALVISO ROCK/HK RACING" DEPOSITS - 1992 Deposit Date 11/10/92 12/07/92 12/23/92 TOTAL Check Date Deposit Amount $5,000.00 11/10/92 $100.00 11/30/92 $3,500.00 12/23/92 $31,493.96 Check Number CM 2992 CM Check Amount $5,000.00 $100.00 $3,500.00 $31,493.96 Payor Transfer Cars Inc. Telephone Transfer Check Memos Comments Less Cash from acct 1300466 Payable to Alviso Rock from acct 1300466 $(160.00) APPENDIX "E" WELLS FARGO BANK ACCOUNT 0108-363904 "GEORGE MACIEL/PETE VIVIANO" DEPOSITS - 1990 - 83 - Deposit Date 01/05/90 01/08/90 01/24/90 01/25/90 02/01/90 02/06/90 02/14/90 02/26/90 03/08/90 03/16/90 04/05/90 04/17/90 04/17/90 04/19/90 05/02/90 05/03/90 05/04/90 06/29/90 06/29/90 07/05/90 07/06/90 TOTAL Deposit Amount Check Date $750.00 12/30/89 01/02/90 $8,500.00 12/06/89 $2,150.00 01/24/90 $4,825.00 01/25/90 $500.00 01/29/90 $8,400.00 02/02/90 $2,600.00 02/14/90 $3,528.00 02/22/90 02/20/90 $8,900.00 02/28/90 03/07/90 $250.00 02/01/90 $8,650.00 04/03/90 04/02/90 $500.00 04/09/90 $15,954.84 04/16/90 04/17/90 $30.00 04/19/90 $8,400.00 05/01/90 $1,888.20 05/03/90 $500.00 05/02/90 $7.50 06/29/90 $15.00 06/29/90 $100.00 07/05/90 $15.00 07/06/90 $76,463.54 3047 3765 1102 1117 5662 3066 17371 104 11522 1129 3084 1143 1002 1094 17726 3112 11740 171 Check Number Check Amount $500.00 $250.00 $8,500.00 $2,150.00 $4,825.00 $500.00 $8,400.00 $2,600.00 $1,764.00 $1,764.00 $500.00 $8,400.00 $250.00 $250.00 $8,400.00 $500.00 $3,500.00 $12,454.84 $30.00 $8,400.00 $1,888.20 $500.00 $7.50 $15.00 $100.00 $15.00 $76,463.54 17903 5844 3127 Payor P.J. Vierra & Sons Charles A. Lamb George A. Maciel George A. Maciel Tri City Truck Parts and Equip P.J. Vierra & Sons P.S.B. Trucking Inc. George A. Maciel Viviano Trucking George A. Maciel P.J. Vierra & Sons George A. Maciel Charles A. Lamb Charles A. Lamb P.S.B. Trucking Inc. P.J. Vierra & Sons Viviano Trucking George A. Maciel Reimbursement of Overdraft Chg P.S.B. Trucking Inc. Tri City Truck Parts and Equip Check Memos 1/1 to 2/1/90 Rent Boscell Isit Cashier's Check Rent 2-1 to 3-1-90 2/90 Rent Cashier's Check Comments Payable: M&V Investment from BM 0593 from BM 0593 Payable to Cash Payable: M&V Investment from BM 0466 Payable: Wells Fargo Bank For Lease Boscell from BM 0593 Rent Bryant Rent Rent Payable: M&V Investment from BM 200593 Rent for 4-1 to 5-1 Boscell Boscell Prop Taxes Boscell 88/89 Sup Ass Payable to Cash from BM 300466 AFCO Payable to Cash P.J. Vierra & Sons Rent for May on Boscell Payable: M&V Investment Reimbursement of Service Chg Reimbursement of Service Chg Currency Reimbursement of Service Chg APPENDIX "F" 1990 DEPOSITS RESULTING FROM NON-TAXABLE ITEMS - 84 - Bank Acct BM300466 BM300466 BM300466 BM300466 WF363904 WF363904 WF363904 BM200593 WF363904 BM300466 WF363904 WF363904 BM200593 WF363904 BM200593 BM200593 BM300466 BM200593 BM200593 WF363904 WF363904 WF363904 BM102605 BM200593 BM200593 WF363904 BM300466 BM102605 BM300466 BM300466 BM300466 WF363904 Deposit Date 01/03/90 01/03/90 01/03/90 01/03/90 01/08/90 01/24/90 01/25/90 02/14/90 02/14/90 02/14/90 02/26/90 02/26/90 03/08/90 03/08/90 03/16/90 03/16/90 03/20/90 04/04/90 04/17/90 04/17/90 04/17/90 04/19/90 04/30/90 04/30/90 04/30/90 05/03/90 05/09/90 05/18/90 05/24/90 06/11/90 06/11/90 06/29/90 Check Date 12/29/89 12/22/89 12/27/89 12/27/89 12/06/89 01/24/90 01/25/90 02/06/90 02/14/90 08/25/89 02/20/90 02/22/90 03/06/90 03/07/90 03/14/90 03/20/90 04/03/90 04/05/90 04/16/90 04/17/90 04/19/90 04/27/90 04/19/90 04/20/90 05/03/90 05/03/90 05/17/90 05/18/90 04/27/90 05/16/90 06/29/90 Check Number 1298 5551 247 3895 1102 1117 5662 9014592 104 3259 1129 11522 8122797 1143 1370 83508 CM 1412 8123340 11740 171 522 22834 8123737 5844 1461 1493 3145 179 249 Check Amount $10,000.00 $1,024.15 $9,757.00 $1,000.00 $8,500.00 $2,150.00 $4,825.00 $4,500.00 $2,600.00 $4,447.40 $1,764.00 $1,764.00 $1,936.02 $8,400.00 $1,000.00 $2.00 $100,000.00 $1,000.00 $873.88 $3,500.00 $12,454.84 $30.00 $2,493.59 $109.39 $44.42 $1,888.20 $1,000.00 $1,200.00 $14,017.00 $25,000.00 $47,495.18 $7.50 Payor BAMA Equipment Alviso Rock Inc Check Memos Shareholder Draw Comments Atherton & Stevens Trust Acct Arbitration Award George Maciel Trucking Reimburse for DMV Fees George A. Maciel George A. Maciel Boscell Tri City Truck Parts and Equip Isit Cashier's Check Taco Bravo George A. Maciel George Maciel Trucking George A. Maciel Viviano Trucking Cashier's Check For Lease Boscell California Land Title Co. Escrow 284613-LM from BM 0593 from BM 0593 Payable to Cash Cashiers Check from BM 0466 Payable: Fred Isit from BM 0593 Payable: Wells Fargo Bank George A. Maciel BAMA Equipment Revlon Beauty Care Time Certificate of Deposit BAMA Equipment California Land Title Co. Viviano Trucking George A. Maciel Reimbursement of Overdraft Chg Bryant from BM 200593 Escrow 287641-LM Boscell Prop Taxes Boscell 88/89 Sup Ass Payable to Cash from BM 300466 George Maciel Closing of Account from WF 384835 Saratoga Savings & Loan Assoc California Land Title Co. Escrow 284613-LM Tri City Truck Parts and Equip AFCO Payable to Cash BAMA Equipment BAMA Equipment US Treasury Cashier's Ck Cashier's Ck Reimbursement of Service Chg Race #4,5,6,7,8 & 9 1990 DEPOSITS RESULTING FROM NON-TAXABLE ITEMS Bank Acct WF363904 WF363904 BM300466 BM200593 BM102605 BM200593 BM300466 BM300466 BM200593 BM300466 BM300466 BM102605 BM300466 BM300466 BM300466 BM102605 BM200593 Deposit Date 06/29/90 07/06/90 07/10/90 08/15/90 09/14/90 09/14/90 09/14/90 10/12/90 10/17/90 10/23/90 11/01/90 11/08/90 11/14/90 11/14/90 11/23/90 11/23/90 12/13/90 Check Date 06/29/90 07/06/90 07/03/90 08/13/90 09/14/90 09/05/90 09/05/90 10/12/90 10/04/90 10/20/90 11/08/90 11/07/90 11/09/90 11/21/90 11/23/90 11/30/90 1990 TOTAL Check Number 1585 1641 1277 1124 3981 CM 4000 1527 4065 1760 566 4075 Check Amount $15.00 $15.00 $1,000.00 $1,000.00 $300.00 $2,000.00 $652.51 $40,000.00 $653.00 $1,200.00 $1,200.00 $30.00 $653.00 $1,000.00 $3,000.00 $131.75 $653.00 $328,286.83 - 85 - Payor Check Memos Comments Reimbursement of Service Chg Reimbursement of Service Chg BAMA Equipment BAMA Equipment George A. Maciel Merced Rosales Daniel Hernandez Unknown Daniel Hernandez Jr. Unknown Hillview Engineering Corp Reversal of Service Charge Daniel Hernandez BAMA Equipment Lavrar Trucking George A. Maciel Daniel Hernandez Jr. Sprint Car #69 from acct 200593 Sept ABA 11-35 "Insuff Funds" - ck bounced Loan from acct 300466 1991 DEPOSITS RESULTING FROM NON-TAXABLE ITEMS Bank Account BM300466 BM200593 BM300466 BM300466 BM200593 BM300466 BM200593 BM102605 BM102605 Deposit Date 01/17/91 02/20/91 02/25/91 02/25/91 03/13/91 03/28/91 03/28/91 04/04/91 04/04/91 Check Date 01/05/91 02/06/91 02/25/91 02/25/91 03/11/91 03/25/91 Check Number 4116 4130 1842 1841 4136 04/04/91 04/04/91 1430 CM Check Amount $653.00 $653.00 $1,000.00 $11,300.00 $653.00 $6,250.00 $1,000.00 $310.00 $12.00 Payor Daniel Hernandez Jr. Daniel Hernandez, Jr. BAMA Equipment BAMA Equipment Daniel Hernandez, Jr. Marcelo Rodriguez Jr. Unknown George A. Maciel Reject Charge Rev. Check Memos Comments October 1990 Reimburse Reliance End Dump Math Error? 3/28 DM of $1,000 from acct 200593 - 86 - Payor Check Memos Comments 1991 DEPOSITS RESULTING FROM NON-TAXABLE ITEMS Bank Account BM300466 BM200593 BM200593 BM300466 BM200593 BM102605 BM102605 BM200593 BM200593 BM300466 BM200593 BM102605 BM303171 BM102605 BM300466 BM300466 BM300466 BM200593 BM303171 BM303171 BM200593 BM300466 BM300466 Deposit Date 04/22/91 04/26/91 04/26/91 05/09/91 05/21/91 05/28/91 05/29/91 06/13/91 07/09/91 07/18/91 08/05/91 08/13/91 09/06/91 09/09/91 09/24/91 09/24/91 09/24/91 10/08/91 10/16/91 10/16/91 11/22/91 12/30/91 12/30/91 Check Date 04/22/91 04/05/91 04/10/91 04/09/91 05/15/91 05/28/91 06/10/91 07/01/91 07/12/91 08/13/91 09/06/91 09/07/91 09/02/91 09/13/91 09/23/91 09/23/91 10/10/91 10/11/91 12/14/91 12/30/91 1991 TOTAL Check Number CM 306 4160 40697 33460 CM CM 4202 4207 126 1056 DM 163 4033 1416 1416 4005 1428 168907 4306 CM Check Amount $4,000.00 $200.00 $653.00 $3,721.86 $122.95 $12.00 $1,500.00 $653.00 $653.00 $100.00 $1,000.00 $500.00 $12.00 $2,000.00 $653.00 $11,613.00 $1,000.00 $1,000.00 $653.00 $1,500.00 $150.00 $653.00 $20,000.00 $74,180.81 Reversal of 4/19/91 Transfer Merced Rosales Daniel Hernandez, Jr. Adriatic Insurance Company Stewart Title of California Reject Charge Rev. Phone Transfer Daniel & Cecelia Hernandez Jr. Daniel & Cecelia Hernandez Jr. Collette M. Krull Unknown GM Investments Reversal of Ck Charge George A. Maciel Daniel Hernandez Jr. United States Treasury Daniel Parquette Daniel Parquette Daniel Hernandez Daniel Parquette Collision Final Redeposit from acct 300466 Loan Sprint Returned ck 8/9 DM $1,000 from acct 3171 Tax Refund Aug & Sept Rent May have bounced - 10/1 DM Aug & Sept Rent OOPS "Insuff Funds" - debit memo in acct 0466 Electric & Gas Industries Asso Refrigerator Rebate Daniel Hernandez Jr. Telephonic Transfer check bounced From BM 0593 1992 DEPOSITS RESULTING FROM NON-TAXABLE ITEMS Bank Account BM300466 BM300466 BM102605 Deposit Date 01/23/92 02/06/92 02/12/92 Check Date 01/11/92 02/07/92 02/10/92 Check Number 4338 685 1077 Check Amount $653.00 $700.00 $3,500.00 Payor Daniel Hernandez Ricky or Ana Flores GM Investments Check Memos Comments Advertising Sprint Car Bounced - 2/14/92 DM from acct 303171 - 87 - 1992 DEPOSITS RESULTING FROM NON-TAXABLE ITEMS Bank Account BM200593 BM303171 BM200593 BM300466 BM300466 Deposit Date 02/12/92 02/12/92 02/26/92 03/03/92 03/04/92 Check Date 02/10/92 02/10/92 02/25/92 03/03/92 03/02/92 Check Number 4359 180 216 CM 4373 Check Amount $653.00 $3,500.00 $500.00 $100,000.00 $653.00 Payor Daniel Hernandez Jr. George A. Maciel Collette Krull Balance from COD #001291269 Daniel Hernandez Check Memos Comments from acct 300466 BM300466 03/04/92 03/03/92 5437 $136,945.68 Cashier's Ck to Santa Clara Title Co purpose" "Not used for intended BM200593 BM102605 BM200593 BM200593 BM200593 BM300466 BM300466 BM303171 BM102605 BM300466 BM300466 BM300466 BM300466 BM300466 BM300466 BM102605 BM200593 BM102605 04/01/92 04/07/92 04/16/92 04/21/92 05/15/92 05/15/92 06/03/92 06/12/92 07/06/92 07/23/92 08/25/92 09/08/92 09/23/92 09/23/92 10/21/92 11/10/92 12/07/92 12/23/92 184 4395 CM 4417 03/11/92 61741206 04/07/92 04/10/92 04/21/92 05/10/92 03/20/92 06/03/92 06/06/92 8140454 CM 4433 397 4466 4493 DM 4534 1135 CM 879 CM 06/25/92 07/10/92 08/10/92 09/08/92 09/11/92 09/12/92 10/13/92 11/10/92 12/05/92 12/23/92 1992 TOTAL AT&T George A. Maciel Daniel Hernandez Jr. Dad's Enterprises Daniel Hernandez Jr. California Land Title Co. Balance from #01-201318 Daniel and Cecelia Hernandez Residence Service Refund Transfer Escrow No. 331486-LM BM200593 from acct 300466 San Jose Equipment Sales #291 Repairs Payable: Newark Truck & Body/Bounced Daniel Hernandez Daniel Hernandez Deposit Correction United States Treasury Tax Refund Daniel Hernandez That's All Folks! Thank You First American Title Insurance Escrow No. 208810AM Transfer Ana Flores Telephone Transfer from acct 1300466 Bounced - 12/15/92 DM from acct 1300466 $369.44 $7,500.00 $653.00 $4,000.00 $653.00 $7,657.22 $100,000.00 $653.00 $614.00 $653.00 $653.00 $0.17 $16,895.00 $653.00 $10,381.17 $5,000.00 $700.00 $3,500.00 $407,639.68