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told them about the lecture. CFS offered financial planning, and
petitioner spoke with Keith Maynes (Mr. Maynes), CFS’s financial
planner, on several occasions. Mr. Maynes proposed an investment
in a limited partnership called Utah Jojoba I Research (Utah
Jojoba I) which would engage in the farming of jojoba plants.
Petitioner read articles on prospective business for jojoba
oil and its many uses. Petitioners received a “Private Placement
Memorandum” (the prospectus) to review. According to the
prospectus, dated November 10, 1982, the cost to invest was
$8,480 per unit with a minimum of four units per investor. For
each unit, the investor was to pay cash of $2,500 and execute a
promissory note for the remainder, payable annually for 10 years.
On the front page of the prospectus, it is stated that the
offering involved a high degree of risk. The prospectus also
contained the following statements: “Investors are urged to
consult their own counsel as to all matters concerning this
investment” and “Each purchaser of units herein should and is
expected to consult with his own tax advisor as to the tax
aspects.” The prospectus also cautioned about agricultural risks
and warned that there was no structured market for jojoba oil and
there were limited processing facilities.
Petitioner scanned the prospectus but did not read it
carefully. He did not seek any outside professional advice
because he has “always made his own judgments on these things”.
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