III U\! past tew daY$ .

':erbe:ran
I$.TOng em\llo1!t I Stelle &.l'lodoH.
Ann-
to
'PI'Wltely proV\6t I number ofmaiot t<ln\.
p:anl.fS UCI blstitl.I!~QM withe. Ilmple e~li'
natJar. for ~r. Il.~
Am1.Jtrcng', S\.Iddtnl)'
p.!Il"fllt WId wml/lt\y l.M~b\e
Idftll.ltb.
Tax Belote ~ T~ed ku.t mMU\. MI. So-
ladoU 'WAI ccn\roUer r.)/ iIll ob5el.lrt San
Frantl.aco firm. H.IUIillltJII Talt , Co..
Was the Big Spender t.NtI\~ by tdr > ~ Id.nu IIarth
1988, Tlltl firm Ulnu.tfy ~ n.S btl·
Just Spending Money \lOft In payroll wtlJl.holdl.n£ WK OIVI!od to
In.. !Ill/!'C"I'IJI.I Rl'v~Uf Servi«o lind cthllr !ax
np!l.elr.i (or tllch 1l'Vf:n!o! trnp!oym u
Firms Owed to IRS? f.'e-dmJ
(:cdt. 1)/.
, Castll!' &I
State sal'
of CtlIfOMi.a and I.b.e OaklAnd Atll\!l\ci.
Texan 'Cbip' Armstrong Ran Kind Ponzl Sebeme
Mr, Salodo.t! a1Il1fti to (eden! 1"ttu:111'
&heme Processing Funds, UtS 911d In A memonmdum Iiled With & fed·
Former Employee Alleges ~flll '!lIt wt I~ad 01 promPtlY ~t·

-
FedEx Frets Over $16 Million
By B.4U'H T, K(NC Ja.
SltaIl iltorll"'>rll'" orr" .. w....... a"l"ll~~ '''Ull''' .....
Wt year s FO!1l1!1 of JuJy p!rty at t.bt
l,l')(,lG-acre COu\:llt C raneb near
TexlS. "'U II l'CeDt neb!
0111
The 2&0 rutsts ft\'t [Nate<! to B. rodeo In ~
lJ'!!D3, !he R'lWI)t 01 C1lill'llry IUi1
SI.rn1t, 2M 8.ft hour of firelJrOl'ki a.f-
Ur e slt'dOlllll dinner.
tM host ~d rmtll o-.mer. COOrue C.
"c."IIP~Anm;lrong Jr .. was ulebrQl.\llr 11
pefS4!lalldfld of il'Id~lulenee day: HJs b·
mer hId )USt eDmDltle4 an l8'f1\Onth jlU
Il.'nn for J.!I.W)6erlng druC' !'!'lotie)'.
'Tbe eX'Q'tvara.n.u was DOU!wortl:\y. lven
by !.be S'W!dard$ of Texas' bytone nI)'
boom ~ 1l.Iltfi at! lSS8 Oup
.lliNtronr. IIOW yean llld. warked u a
S16.,{lOO-a yw I'trem.an e.ni1 b.ad a l\.I.slOI'Y Oi
1:101 tepam baJlk Joans in 19a!l. lI.e de·
clared Iltrr.on.tl DWl:tIptty .ftu the fatl·
ure I)r i tDUlU bUSU'less be ran ()41 ~
&Ide-l.I!mporary worken; IIJred by Mr •
Al1'Il.Str onr sprayed Ilre-ri!ta.rdanl mateMalI
00 tile .r.eel tta.mts af amunetdal tKItld·
Ing&.
~tJEIIIs til ~
- tleq:in SUCb nven:a..l1. Mr. .ums:tn:lng
t:h.e.pt'St t&o c:a.m:t UJj VII1tl1 b\lI-
log eU of tNsc fUndS W'ttb the ptOflel' fav·
4'mnltl'lt ~f!CY as tUpub1ted by ecmtr!l.~!.
~tr, Af!TIlIt1'I)!\g 6.lyeNd INJfY nullkmJ to
1111 0\Im f>rlllllf IrU"S III a bnd of Pom::\
scheme now 01\ Ult verre o( collll.p5!- Some
Ham1ItM Tall CWlICl'1N!tIl cc.nfirm tile dl
\ets.!tm.!, alId Mr, Solodor! uttmateS !.hat
tht-y t.lXa.I nearly noo mUllan.
Hl!.!ntllon T1i!t. It rul'1l!l out. Is (1M (J{ llie
hllliitlit IA>; r.ftlCl!Ul:Il'I in tnt ClllllltrY. But
tblS 1.i'I11 a ~t ~ to be II! rigM
1I0W. I.ASt Yt lif. Ibt [RS ~t tfIe lag 'I1m.e
~twetfl p.ayday and ux payment" from
Hlnt 4aY1 to one wlth I! JU'ilJJn1Wd de·
~I pt«est, sharply eulU.lhng /'!W"ttllS.
~tg playetJ lite ADP artd Qa.nltAmtr1ca
I
I!enmtt Ill!' better lees by Ollertnc e«n-
f1\tte payroll se~ !
A«.Dtdlt1f 1£1 Mr. Bi>lodaH. t!'Ie lure for
Mr. AmlStrllllf \IIU flat proftts 00\ hue. I
lOWly \lQT'tfUlIttO cash (laws. Al:te:S'& to
ihat money bAs htlped hlm c~&ee It Uti )
rtyle lie cou.!rl ooly lIre.!un of durin: Ul\cw' I
tlreba.lst shifli. II \lfe style ttw would al· r
low hmi to ,tar In hI.s own ~ lUiyQme i
hr V/tshK and m~ 'OallM WCIlIUI\ he
U!l'd UI rut It Irt lOOl!t;' pam. I
How It WlIrUd
~re'i how !It.tt &ebeme ~e(I, tw)N'
I
II
llIi tc Mr, SQlodoffs memClr611i1um filed
With ted,raJ !!.Olin doeltmtnts: ~ ».1IJ.c: I
r
• idc.1. w;u It1l1U.Sk the loti",yment 01 tAxes
tn" s:u.rting quwr.lt'a not too t.oog1I. AU j
ytIl.1 dA I.s repc.rt to W ~ lil!ncy tbJit you
are
~
maid. tbl! ~ p!Llf'rIlent \aU 11.9
lIew qualUf bq:!ns. 10\1 t&ke W fIN
I
f\lla.rtl!t' a fill last q\l.lll'teT"& 1
bole. 1M villi forward Dtlt'
qlJJ:!'!!r, WIUle Pl)"Rlefits recelft!j mew . I
~'Yt qllUfElr Iftep .lmUI, It n.e bl.r
I1vranj for all !.bill ~l~·filltnr la the. ehunk
01 UI'lpal6 \.IU~ tram tM ttart.lI:Ir QIlAI'!.eT
Irs; tou.1Id R\Oory.
1M tVllnrua.ll.:r. hCll ....5.!tl.nr rea wry
c.mly. Than wIltre tht Panii aspect
emnts l.h. 'I'M u:tS t.sse'f.ll,eS A. lCl"/. fIe!lAlIV
phls U!.tete:JI on even' Ill"' ~I. UJ)-
~ ~ Ut t:e.m1I\.r at least ltl"h q\lluterly
l~ &.n.nually I lie ~our "foond Vlo.ney"
&CId p..u.s It along to me \.aX man, yOI.I wl!!
have til dI.r the holt that !Dnell< deeper u.cn
tIm.t ....n:lUnd to rep.alr tilt ~.
.u th~ bltH. itt birrer LTId rnt.rI"t c:.Ilel\1S
I
• II'f.. blnfll, 1M el'Wlee mcna.s:es that 50l'1'l.I.'
tUttll Will rtt a peNlJty nCilkt Slid aJIk '
~l1i questions. llUlcI! HamIltOn
. ~ l.U ~ 1!S'''6Ii!\\S!thit'' ~I.teQtt,
tatl'
ae-
l
• "I._~. "",,_ .... ):1404> Ali. Col\l:l1l.ltJ
 ..
- ·~
-L

'ax Question: WM Big-Spender 'Chip' Armstrong

Just Spending Money That Others Owed to IRS?

c.LlStorn en wUl !ruffer at·

01'.1 Ha.m.t.ltOb talt's i i

at'llhly 1.0 ge.ne'!1kte q,u.\clQy from UI"

tUn In ~.stm.eDU 0fI tb br:lo.ks. All Ilf Dee. , Litton Unit's Soviet Venture
31. It beld tot.al1ng Ifi mWlon frOm BEVERLY Cillf.-A gutw.dlary
C'ompa.roe.S by Of amJla1ed wIth Mr. of IJn.oa stgned IJl ~
Armrtn:lflg, J.C;C(lrQml UI an I.I1WldJted ment with III So~t COI'lttm w fOrm Il.!o!n\
eompany b.aLa.nee ~l VeD.tuf\!! Ui proVide teehnlcal Soervices in t/Ir
"Tbere .IS un<:ert8llll:y 01 the ~Y'li .RI.!.E:Il.an l'epllblic..
abUlty I/) meet Its obbgat.li:m.£:' says An, Of tI'Ie a,reemttlt were!! 't dis
th<my llotan:stl III 1{PMG Peal MaMek.
Hanulton fait's atcOWltant JD a JUDe 1989
review, Put Ma'l"Wlck dUd a S1.9 milllon
11IOrk1nr-clPltaI dew:U and BLI.d "substan-
li.a.Uy mQn furd!I hv-e been eoDected 1'rO!n
clients thall am ellJ"rt"fltly I 'Iil1able to I18Y
those tu:i!s:' By yeaHnd. 1990, In.
internal sheet ,boWl, that filurl'!
Iw3 1.0 sa7 miUIbn..
6ly5 U has talItd tot twO
.."m:I\I",U l full QUdll Of tht earn-