- 120 -
On February 26, 1983, the New Jersey Department of Labor
pointed out another mistake. It wrote to "William Bryen and
Bruce Bryen, t/a MIT 83", advising that Machise, not MIT 83, was
listed as the insured on the Standard Workmen's Compensation and
Employer's Liability Insurance policy for the period July 1,
1983, through July 1, 1984.
Moreover, the $2,148,764 asserted to be owing by Machise to
MIT 83 in the Termination Agreement is an error; the amount that
should have appeared in the termination agreement was $2,135,260.
After the 1985 payroll costs were paid, MIT 85 billed
Machise for 120 percent of the their total amount, as the
"compensation fee." It should have billed MPC.
With respect to MIT 86, Fred prepared a note in payment of
the compensation fee. The amount of $585,511 appearing on the
note was incorrect and should have been $588,511. The
transaction was recorded on the books of MIT 86 and MPC in the
amount of $588,511.
Finally, with respect to W & A, the employee leasing
agreement required W & A to deposit $3 million with BBPA. The $3
million figure was wrong; it should have been $4 million as the
entire capitalization of W & A. Additionally, Fred terminated
the existence of W & A itself as a "mutual mistake", when he
realized that his interpretation of section 469 had been ill-
founded.
The significance of petitioners' failure to adhere to their
Page: Previous 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 NextLast modified: May 25, 2011