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rate the Bonds, the Bonds were to be "temporarily warehoused"--
that is, the Bonds were to be sold and held prior to their
ultimate sale to the investing public. Two days before closing,
a representative from Matthews & Wright informed Mr. Newman that
an entity known as the Commercial Bank of the Americas, Ltd.,
located on the island of Saipan in the Northern Marianas, would
purchase the Bonds from Matthews & Wright and hold them for
temporary "warehousing". Mr. Newman subsequently discovered that
the Commercial Bank of the Americas no longer had a banking
charter and was operating simply as a corporation.
On December 30, 1985, Mr. Newman instructed Richard B.
Hemingway, an associate in the Stubbeman firm, to take the
Whitewater, Ironwood, and 16 other bond certificates to New York.
Karen J. Cole, a representative of Interfirst Bank, was also in
New York on other business on December 31, 1985. Although she
had little prior involvement in the Bonds' issuance, she was
asked to go to the offices of Matthews & Wright to attend the
closing.
Mr. Goldberg headed a federal credit union named New
American Federal Credit Union, located in Jersey City, New Jersey
(the credit union). On December 31, 1985, Mr. Goldberg
instructed Joel S. Schwartz, the general manager of the credit
union, to come to Matthews & Wright and to bring "starter kit"
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