- 14 -
that they would be repaid in 120 monthly installments of interest
and principal. On July 17, 1980, Intercoastal drew checks on an
account at the Bank of New Jersey totaling $2.4 million. The
checks were payable to the MIT 80 investors in amounts equal to
the face amounts of their notes. The investors endorsed these
checks to MIT 80. These endorsed checks constituted the only
capital investments in MIT 80 made by the nine investors.3
MIT 80 and BBPA also entered into a management agreement,
drafted by Fred, dated "as of" January 1, 1980, whereby BBPA
agreed to manage MIT 80. At Fred's behest, Bruce signed the
management agreement on behalf of the MIT 80 partners pursuant to
their powers of attorney.
MIT 80 Employee Leasing Arrangement
MIT 80 and Machise entered into an employee leasing
agreement dated "as of" January 1, 1980. The agreement provided
that MIT 80 would furnish all the employees and independent
contractors needed by Machise to conduct its business for the
1980 calendar year.
The agreement specified the duties of the partnership in
some detail. Thus, under the heading "Supply of Individuals",
3During 1980, the investors of MIT 80 actually made cash
payments totaling $158,580.80 to Intercoastal, as payments of
principal and interest on their notes. These payments went into
a separate set of accounts called the MIT 80 ledger. They were
deposited with the Merrill Lynch brokerage firm and with the
Empire Savings & Loan Association.
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011