- 51 -
Machise the $2,888,666 non-interest-bearing demand note
originally made by Machise in favor of Qulart (which Qulart, at
the MIT 83 partners' behest, had endorsed to MIT 83). Because
Machise received back its own note, that note was retired.
Operation of MIT 83
Another new entity, a partnership named MIT Associates
(MITA), was formed on January 1, 1983, with Bucci and
Intercoastal as its two partners. Bucci had a 99-percent
interest in MITA, and Intercoastal had the 1-percent interest.
MITA employed the calendar year as its tax year and used the cash
method of accounting. The address of MITA was the same as that
of Machise--500 North Egg Harbor Road, Hammonton, New Jersey.
Ingemi's widow had instituted a lawsuit against Bucci and his
companies, and MITA was formed to prevent that litigation from
affecting the MIT partnerships.
MIT 83, MITA, and Machise entered into a management
agreement dated January 1, 1983. This agreement, prepared by
Fred, provided that MITA would manage Machise on behalf of MIT 83
for the period January 1 through December 31, 1983, for a "fee to
be determined by mutual agreement". After execution of the
management agreement, Bucci still controlled and directed the
employees and independent contractors.
The employees and independent contractors were the same
employees and independent contractors who had provided their
services to Machise prior to the MIT 83 employee leasing
Page: Previous 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 NextLast modified: May 25, 2011