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distributed $285,952.34 to its
partners who used the proceeds to
pay the annual installments on
their notes payable to MIT
[Machise] (See schedules)
As a result of the endorsement on the $285,952.34 note, the
investors did not make any cash payments on their notes to
Machise in 1984.
Machise issued similar notes, similarly endorsed, in June
1985 and 1986, although in those years the notes were each in the
amount of $443,415. Each year, the note was issued to MIT 80,
distributed to the partners, and then credited against their
liabilities to Intercoastal.
In 1986, an entity named Machise Personnel Co. (MPC)
purchased all of the financial assets of Machise (subject to any
related liabilities) that had been generated by the yearly
employee leasing agreements to which Machise was a party. MPC
was a partnership consisting of Bucci, who had a 99.999-percent
interest, and Intercoastal, with a .001-percent interest. MPC
was used to remove from the books of Machise the receivables and
several million dollars of liabilities to MIT 80 and its
successor partnerships. This was done in order to satisfy
lenders and suppliers of Machise. The MIT 80 investors' notes to
Machise were accordingly assigned to MPC.
On June 30, 1987, MPC, like Machise in prior years, issued
to MIT 80 a demand note, bearing no interest, in the face amount
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