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books of the credit union's share drafts4 with him. Mr. Goldberg
informed Mr. Schwartz that he (Mr. Schwartz) would be signing
documents as a representative of the Commercial Bank of the
Americas.
On December 31, 1985, using credit union starter kits,
personnel at the offices of Matthews & Wright prepared the
endorsements and typed out the faces of 24 share drafts. These
included a share draft payable to Interfirst as trustee in the
amount of $17,613,020.83 for Whitewater, and another in the
amount of $13,083,958.33 for Ironwood. On that day, share drafts
totaling approximately $750 million were drawn by Matthews &
Wright on a nonexistent account at the credit union.
At the closing, Mr. Hemingway showed the documents relating
to the issuance of the Bonds to Ms. Cole and then delivered them
to Mr. Goldberg. Following directions from her home office, Ms.
Cole received the Whitewater and Ironwood share drafts. She
endorsed these share drafts "without recourse" to the Commercial
Bank of the Americas to purchase two investment agreements from
that institution. As of December 31, 1985, the Commercial Bank
of the Americas had no apparent assets in excess of $5,011 in an
account with the Bank of Guam.
Mr. Schwartz, on behalf of the Commercial Bank of the
Americas, then endorsed these share drafts back to Matthews &
4These "share drafts" were the functional equivalent of a
check drawn on the credit union.
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