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Churchill's attention.
Bruce did not explain to Churchill the significance of being
a general partner in the MIT partnerships. Churchill knew of no
partnership meetings, nor was he consulted on partnership
operations. He did not know the other partners. He did not
understand the accounting mechanisms of the partnerships, but he
relied upon Bruce. Asked specifically about his participation in
MIT 82, Churchill did not recall being consulted before
termination of that partnership’s employee leasing agreement.
Before trial in these cases, Fred informed the investors in
writing that the trial was in the offing. A typical letter from
Fred to an investor advises--
If you are called as a witness, Steve Jozwiak will
prepare you for trial. In general, he will tell you to
tell the truth and try not to become confused.
Steve will expect you to testify to the true facts
that you knew that you were at risk for $137,500.00 and
that you expected to earn 13% on your investment which
would be more than enough to pay your note. In
addition you had the protection of your tax savings but
you knew that you would have to pay taxes on the income
that you would be reporting over the 10 year period.
Steve will also expect you to testify that you expected
Bryen & Bryen P.A. to manage your investment and MIT 82
and to take care of all of the details without
consulting you.
OPINION
Three aspects of the employee leasing programs structured by
Fred Bryen are in issue in these consolidated test cases.
Respondent’s first set of determinations denies, for the years
1980 and 1982, to the partners, and in subsequent years (1983,
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