According to the sheet, $136 was spent for elevator work, $80 for pest control and zero for "maintenance." More than $9,300 was spent on mortgage payments. About $2,200 went for overhead fees: "management," "legal," "sales" and "wages and commissions." With utility costs, the result was a net loss of $949.
Writing Off Losses
Innocent investors write their losses off on their income taxes. And, because the slum trader may have defaulted on a note held by one of his own companies, he is probably in a position to write his "loss" off as well.
There is nothing illegal about creating one new company after another.
"There's nothing wrong with creating 100 new companies or 1,000 new companies," said Jim Reber, spokesman for the state Franchise Tax Board. "That's perfectly legal. But if you don't file tax forms, they will be suspended."
Many of Leyton's companies are suspended for failing to file state income tax returns, the public record shows.
Numerous Leyton-related corporations have filed for bankruptcy. In an apparent violation of bankruptcy regulations, records show, Leyton failed to disclose to the court on more than one occasion that he held a major interest in several companies that previously filed for bankruptcy.