After lunch, Prosecutor Armijo returned to the 2009 tax return, and mentioned earlier they were talking about the method of accounting was the calendar.
Judge Brack interrupted asked if she was prtraying that to include income with the LLC.
She explained she had switched over their tax return, Mr. Gorence objected and after a conference at the bench, the topic was switched to another area of interest.
Ms. Armijo commented that Rick stated he didn’t read the newspapers; he answered rarely.
Ms. Armijo pulled out a 2005-2006 era scrap book. Rick stated he might have had some articles related to his business.
Armijo stated it was more than articles about the store, it included articles about the border. Rick didn’t recall anything specific to the border, so Armijo handed him the scrap book. Rick was observed browsing thru it, and lifting sections of newspapers up.
Armijo asked him if he was familiar with this item. Rick stated no, he didn’t recognize it. He saw some articles with his handwriting but he didn’t recognize the rest.
Armijo directed him to one with some handwriting. Rick stated it wasn’t his handwriting, and informed her that customers would come in and drop off papers or articles.
She asked him if the article had anything to do with his store. Rick stated one of his customers flew choppers for the Border Patrol. The Border Patrol guy is the one that brought it in.
When asked if he worked hard to building the property in the 80′s and 90′s, Rick answer yes.
She asked him what his state of affairs was in 1992, and Rick thought he was probably in the camper shell business around that time in Las Cruces. She asked him the camper business, and he replied he thought so, yes.
Ms. Armijo asked him if he had $40,000 in cash. Rick said yes. He had sold his business and cashed the check at the bank. It wasn’t the exact amount but it was a significant amount.
Ms. Armijo returned to Penny Torres and stated he did not recall her there. Rick stated no, he didn’t say that. He stated he was busy, and other family members were in the store, and re called her daughter was with her, and recalled her purchases.
Armijo showed him an exhibit and noted she purchased several firearms. Rick looked at the exhibit and agreed.
Armijo told him the next time she came in was June 30, and Rick replied it sounded about right. When he was asked what she purchase, he didn’t recall.
She showed him an exhibit and asked him if he recognized the handwriting indicating 10 firearms. Rick wasn’t certain, but stated it was possibly Ryin.
She pointed out the date as 06/30/10 and that Penny Torres left a deposit of $3000, including freight. Rick agreed. She asked him if he placed the order with firearms distributor Bill Hicks, and Rick couldn’t recall. The reviewed some phone number one was for New Deal. And another was for Shannon Rodriguez, and was a number associated with Penny Torres, and the document showed Penny Torres called New Deal on June 30th several times.
She moved on to phone records for 07/02/10 showing New Deal called Penny Torres, and that on 07/03/2010, Jose Roman called New Deal twice, once for 10 seconds, and another for 27 seconds. Rick agreed.
Armijo showed him the 4473 form associated with this purchase, where Penny Torres initially signed on 06/30/2010 and then re-certified the date. Rick stated he saw that. Armijo asked if the re-certification date is run if an individual comes back to pick up weapons and would it be consistent with the date she picked up the guns. Rick stated he thought so.
Armijo questioned his deposits and showed him a $3000 cash deposit made on 06/30/2010, and the balance due on the order of $4615.17 due deposited in cash on 07/05/2010. Rick stated yes they generally deposit funds the next business day.
Armijo asked Rick to explain the date on the 4473 as 07/08/2010. Rick stated it was the date she came in to pick up the weapons.
Armijo showed him the A&D log for those weapons, which indicated the guns left the shop on 07/08/2010. Rick agreed his logs reflect that.
Ms. Armijo asked Rick if the weapons came in on 07/03 to pick up and you went back to A&D and not the <not understood , confusing section>, and if the A&D and 4473 reflects those is it more likely she came in on the 3rd to pick up? Rick answered yes.
Armijo asked if Rick referred to Penny Torres as Mexcan in the day timers. Rick didn’t recall if elsewhere. She asked if he used that for all Hispanics, Rick didn’t know. When asked if he disputed the spelling, Rick answer it was just “shorthand, counselor”. She asked if he referred to her twice; Rick didn’t remember.
Armijo asked if he knew Roman. Rick answered yes.
Armijo stated he had been coming in for a few years. Rick stated yes. that he had come in a handful of times occasionally to buy ammo.
When asked if he had any idea that Roman was associated with Penny Torres, Rick stated, no, he brought her in and introduced her to his son or wife, but he wasn’t there.
Armijo stated he knew Roman was associated with Penny Torres. Rick replied no, a lady. When asked if it was a situation to give a lady advice, Rick stated it could have been, that frequently ladies come in with someone more knowledgeable, often men who know more.
Armijo stated Penny Torres bought 23 firearms from his store; Rick agreed.
Armijo asked him why he didn’t tell law enforcement Roman, who was from Mexico, brought in Penny Torres. Rick stated he didn’t really consider it, that when he met Penny she was in with her daughter, and alone and doing business with them, and she told them her family was in Arizona and they enjoyed shooting firearms.
Armijo asked him if she bought major rifles, AK47 types, Rick believed so as well as pistols.
Armijo stated he knew Penny was associated with Roman. Rick replied he knew the came in one morning, and when she was by herself he didn’t make any connections. He stated many customers do this. Come in first with someone else, then later by themselves.
Armijo asked who talked to Roman [on the phone]. Gorence objected, stating it had never been established that Roman called, and there was no testimony he called.
The attorneys approached the bench for a length conference.
Apparently there was testimony that Roman called to see what was on stock. Armijo asked who called on 07/03. Rick stated he didn’t know. Armijo stated on April 29 there were two calls from Roman, and wanted to know who answered the phone. Rick had no recollection. When asked if he was made aware that Roman had called he said no.
Armijo returned to the tax returns, and asked him to explain how he files tax returns. Rick stated he provide information to his CPA, and the CPA formulates the tax information. He was asked if he reviewed the returns and if he went over income; Rick answered yes.
She showed him a 2009 personal tax return, and Rick agreed it was his and Terri’s individual tax return. When asked if the information reflected the LLC and asked if it should correspond with the Day Timer. Rick replied he provides the CPA the paperwork. It is sent to him and he enters it into a computer. He provided figures and the CPA did the rest of the work, and she would have to ask the CPA. When asked if he was aware of what was filed, Rick stated if there were any questions she would have to speak to the accountant.
Armijo turned questioning over to the 2010 tax returns. Ms. then reviewed his gross sales and gross profit numbers. She asked him if the day timer and calendar agreed with the gross sales. Rick stated he couldn’t remember the exact numbers but that is was a good year. In response to some of her statements, Rick pointed out that the gross profit number was not the net profit number. Armijo went thru a similar exercise with the 2010 tax return. Rick again stated without looking the figures he couldn’t say, however, he didn’t agree on the profit number she was citing, stating that the number she was citing may be the gross profit number, but not the net profit number.
Rick’s attorney would up having to object because Ms. Armijo was arguing with him. Gorence stated Armijo was trying to show cash sales, however, this isn’t a tax case. The Judge counseled the Jury that this case is not a tax fraud case, and Armijo’s line of question were to attack his credibility.
There was another series of questions about gross sales and other numbers on the tax return and some statements made about some differences between the business tax returns and his personal tax returns.