- 9 -
for note collection guarantees; and (4) a maximum of $100,750 in
investment advisory fees. In addition, MFA was also the
ministerial agent for the office building limited partnership
and, according to the revised offering memorandum, received
substantial payments in that capacity.
Efron obtained financing for the EI investments through
local banks. Like a number of limited partners in EI,
petitioners in these cases made a cash downpayment to EI and then
signed installment promissory notes for the remainder of the
purchase price. Thereafter, Efron pledged any promissory notes
received from limited partners as security for loans to EI. In
addition to lending funds directly to EI, the banks also offered
loans to individual limited partners for the downpayments needed
with respect to the EI investments. Donald Cassaday (Cassaday),
a vice president of the First Bank of Whiting, was involved with
arranging the financing for EI with Efron and arranged required
financing for some of the EI limited partners.
Wilson and Sorey subscribed to purchase limited partnership
units in EI in the respective amounts of 1-1/2 units ($150,000)
and one-half of a unit ($50,000). Wilson did not borrow any
funds with respect to his investment in EI. The record is
unclear as to how Sorey financed acquisition of his investment in
EI.
Wilson learned of EI and the Clearwater transaction from
Efron. In 1981, Wilson began to play professional football as a
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