- 26 -
note was for $285,942, Machise had earlier "advanced"
$6,509 and issued a check for $150,338, for a total of
$442,789.) After 1986, the notes were issued by MPC.
8. The demand notes (and the check for $150,338) are
deemed distributed to the MIT 80 partners.
9. Endorsements reflect that the demand notes (and the
check for $150,338) are used to pay partners'
installments on their 10-percent notes to Machise,
which had replaced the notes to Intercoastal.
10. MIT 80 employee leasing program terminated in 1988 with
MPC's assignment of partners' notes to MIT 80 for
credit against MPC's obligations to the partnership.
MCP remained indebted to the partnership for
$1,295,108, most of which was later claimed as bad debt
loss by MIT 80 partners, on transfer of MIT Personnel
Co. stock in 1992. See infra pp. 27-30.
Termination Agreement of MIT 80
Fred prepared a Termination Agreement dated January 1, 1988,
between MIT 80 and MPC with respect to the employee leasing
agreement. Fred signed the Termination Agreement as vice
president of BBPA on behalf of both MIT 80 and MPC.
As stated in that agreement, MPC owed $2,401,416.25 to MIT
80, but it reduced that amount by $1,407,627 by assigning to MIT
80 the partners' notes to Machise (these notes were the
substitutes for the notes originally issued by the partners to
Intercoastal).
MIT 80 was then to distribute these notes to its partners.
No formal documents to effectuate the assignment of notes from
MPC to MIT 80 were prepared, nor were any such documents prepared
to carry out either the distribution of the notes to the partners
or the assignment of those notes by the partners to Machise.
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