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Investors in MIT 80
There were nine investors who became partners in MIT 80--six
individuals, a trust, and two partnerships that BBPA had
organized. One of the individual partners was Donald P.
Crescenzo (Dr. Crescenzo), a dentist who practices in Hammonton,
New Jersey. The Bryens were his accountants. Bruce recommended
that he invest in tax shelters. He invested in MIT 80 because of
the tax-sheltered nature of the investment. Dr. Crescenzo had a
lot of faith in the Bryens and left the matter of his investment
entirely up to Bruce. He was later surprised to discover that,
in the course of becoming a partner in MIT 80, he had signed a
note for $150,000.
The MIT 80 investors were provided with a three-page
document prepared by BBPA that set forth projections of income
and expenses to the end of the partnership term.
Organization and Management of MIT 80
Beginning in July 1980, the nine MIT 80 investors executed
powers of attorney in favor of BBPA. Thereafter, at Fred's
suggestion, Bruce signed the partnership agreement of MIT 80 on
behalf of its investors, who thereby became partners in MIT 80.
During July 1980, the investors, including petitioner
Dr. Crescenzo, also executed promissory notes aggregating $2.4
million to Intercoastal. The notes bore interest at the annual
rate of 10 percent on the unpaid principal. The notes specified
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