- 81 -
Fred signed the Termination Agreement under the heading
"Bryen & Bryen, P.A." on behalf of both MIT 86 and MPC. None of
the investors in MIT 86 received a return on his or her
investment.
Fred caused MPC to enter into the Termination Agreement with
MIT 86 in 1988 in order to relieve it of its liabilities to MIT
86. Fred caused the partners of MIT 86 to enter into the
Termination Agreement with MPC in 1988 so as to minimize their
exposure to risk on their notes.
On its partnership return for 1988, MIT 86 reported a loss
of $14,687; this is the amount that MIT 86 agreed to forgo in
exchange for early payment to terminate the employee leasing
agreement), plus an accounting fee to BBPA of $1.
After the termination, MPC still owed MIT 86 some
$1,077,307. Fred recommended that the partnership distribute
this $1,077,307 obligation to its partners. The partners were
thereafter listed as creditors against the estate in bankruptcy
of Anthony S. and Miriam A. Bucci.26
26While the $1,077,307 allegedly owed by MPC to the
investors in MIT 86 was still on the books at the time of the
trial herein, Fred conceded that he will probably recommend that
the debt be written off as an uncollectible loss by the
investors.
Page: Previous 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 NextLast modified: May 25, 2011