- 32 -
"instruct each individual as to his work hours and nature of his
duties." As to the contractors, the partnership again had "the
exclusive right to determine the contractor to be used" in
Machise's business.
MIT 82 and BBPA entered into a management agreement,
prepared by Fred and dated January 1, 1982, whereby BBPA would
manage MIT 82. The management agreement provided that BBPA would
receive "such compensation as shall be mutually agreed upon by
the parties", but no less than $45,000 per year.
MIT 82 had several accounts at various banks. One of these
accounts was a checking account at the Guarantee Bank, which was
the payroll account. Pursuant to authorization of BBPA, Bucci
and Ingemi were authorized signatories on the MIT 82 account at
the Guarantee Bank.
Investors in MIT 82
Fred prepared the MIT 82 partnership agreement. Petitioners
Barry and Nancy Bealor, James Cameron, and Frank Pettisani were
clients of BBPA who became investors and partners in MIT 82.
There were 23 other individuals and three partnerships, also
clients of BBPA, who were also investor partners in MIT 82.
Some of the prospective investors in MIT 82 received a four-page
document prepared by BBPA (or a later version of three pages).
These documents made projections of income, expenses, and cash-
flow for MIT 82 to the end of the partnership term.
Page: Previous 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 NextLast modified: May 25, 2011