- 6 -
On November 2, 1983, at petitioner's request, Martin Klein,
an employee of Faleck & Margolies, Inc. (F&M), a jewelry
manufacturer selling at both wholesale and retail, issued an F&M
check for $10,755 to Ron Gelfman. The check bears the printed
statement: "This check is delivered for payment on the following
accounts". Beneath this statement is the handwritten notation
"Gold purchase". This check was deposited in the Gelfman account
at the Trust Co. Mr. Klein has never met a Ron Gelfman and only
made the check payable to him on petitioner's request.
On December 16, 1983, another Renaissance check, in the
amount of $45,000, was deposited in the Gelfman account. The
parties have stipulated that Renaissance's corporate records
contain what purports to be a receipt from Ron Gelfman
Associates, dated December 16, 1983, reflecting the sale of 14K
gold findings to Renaissance at a price of $45,000.
Petitioner opened a brokerage account at Walter Capital
Corp., a securities brokerage firm, in the name of Ron Gelfman.
Petitioner routinely traded in and for this account. Walter
Capital allowed petitioner to use its facilities to trade in
discretionary accounts because it had developed a relationship
with petitioner in which petitioner brought in brokerage business
rather than just acting as a client. This relationship enabled
petitioner to open and trade in discretionary accounts for
others.
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