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Pan American Airways, Which holdings of ZWILLMAN had been brought out previously and had been reported, After ZWILLMAN's lawyers and accountants refused to cooperate With the Government in 1952, it Was necessary for the Government to proceed with the case on the net worth and expenditure theory. JOHN J. O'HARA, Special Internal Revenue Agent, testified on January 30, 1956, that he conducted an exhaustive investigation of the assets and expenditures of ZWILLMAN, his relatives and associates. It Was brought out that ABNER ZWILLMAN and JOSEPH STACHER apparently had profited by $1,000,000 after taxes in the 19423 sale of the Browne Vintners, Inc, On February 1, 1956, MICHAEL LASCARI testified at the trial and stated that although ZWILLMAN was only an employee of the Public Service Tobacco Company of Hillside he Was able to draw large checks on the company in 1947 and 1948 without consulting anyone. LASCARI, who said he was the General Manager of the vending machine company, explained that he and ZWILLMAN had an "informal relationship" adding that “hr, ZWILLMAN could do as he pleased and so could I." LASCARI was asked to describe ZWILLMAN's precise employment with the company, and his reply was "Public relations, more or less,"' After this comment LASCARI was pressed for more details and he said, "Mr. ZWILLMAN supplied leads and helped to close an account When he could." ZWILLMAN contended that he could not be charged with any of the assets of the Public Service Tobaces Company because he gave his a ee ee ee er ee et ee ee partnership share to his wife in 1941. LASCARI testified that he and ZWILLMAN occupied the same status with the company, each being an employee. LASCARI said his family owns 50% of the business. Testimony Was also given that ZWILLMAN drew checks on the Public Service account to make individual unsecured 1 naane ae oe Internal Revenue Agent O'HARA also brought out that ZWILLMAN's efforts to buy into the Tanforan Race Track in California in 1945 was evidenced by ZWILLMAN's sending $75,000 to California and JERRY GEISLER, a Well-knoWn Los Angeles attorney, represented him in the transaction, The negotiations to purchase an interest in the track never materialized. -15-