- 8 -
business and started a new business known as NBO. NBO was a
discount retail store chain which sold menswear. Petitioner sold
half of NBO to a Canadian business conglomerate in 1984, but he
continued to run the business. In 1988, petitioner sold his
remaining interest in NBO for $25,000,000.
Petitioner was an active investor in the 1980's. Between
1980 and the date of trial, petitioner estimated that he invested
approximately $16,000,000 in somewhere between 65 and 70
different enterprises. Petitioner generally relied on his own
judgment in evaluating proposed investments under $100,000; for
larger investments he sought out professional guidance or
counsel.
Petitioner learned of the Hyannis investment through an
acquaintance, Elliot I. Miller (Miller). At that time, Miller
was a practicing attorney who was experienced in tax matters and
was employed as corporate counsel to PI. Miller was a
shareholder in F & G in 1981. He shared office space with
Raymond Grant (Grant) and Richard Roberts (Roberts) from 1982
through 1984. Grant was the 100-percent owner of the stock of
ECI. Miller represented Grant personally and Grant's clients who
invested in other programs that Grant promoted. Miller
recommended that petitioner speak with Roberts about proposed
investments.
Roberts was a businessman and the general partner in a
number of limited partnerships that leased Sentinel EPE
recyclers, including Hyannis. Roberts was also a 9-percent
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011