Diamond Claims & Investigation Services, Inc. - Page 4

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          it was performing for FIG and other customers.2  During the early           
          part of 1983, DCI sold ETS to the Diamonds, who thereafter owned            
          and operated it as a sole proprietorship.3                                  
               During 1983 and all relevant periods thereafter, ETS was the           
          exclusive provider to DCI of secretarial and clerical support               
          services, such as typing, photocopying, transcribing, and answer-           
          ing the telephone, with DCI providing approximately 95 to 99                
          percent of ETS' business.  During those periods, ETS also made              
          its clerical staff available to DCI for DCI's investigative work            
          and permitted DCI's surveillance vans to be marked with ETS'                
          logo.  During 1983 and 1984, virtually all of the services that             
          ETS provided to DCI were related to the work that DCI was per-              
          forming for FIG, and ETS provided certain of those services, such           
          as the preparation of clerical reports, in accordance with FIG's            
               During 1983 and 1984, ETS sent DCI invoices for services               
          rendered that identified, inter alia, the name of the case with             
          respect to which it provided the service, the type of service               
          rendered (e.g., typing or copying), and the charge for such                 

          2  DCI informed certain FIG officials of its plans to form ETS.             
          Those officials, who were concerned about the security of docu-             
          ments containing confidential information relating to the inves-            
          tigative work that DCI was conducting for FIG, assisted DCI in              
          executing those plans.                                                      
          3  At the time that DCI transferred the ownership of ETS to the             
          Diamonds, Mr. Diamond informed FIG officials of that transfer.              

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