Max M. and Joan E. Greenberg - Page 5

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          repaid to Pioneer Mortgage upon receipt of the late payment from            
          the borrower.                                                               
               Pioneer Mortgage was required to inform the investor if any            
          payment it remitted to the investor came from a source other than           
          the borrower by designating on the check sent to the investor that          
          such funds constitute a "loan to the lender".  Thus, when Pioneer           
          Mortgage advanced funds to the investor to cover the borrower's             
          late interest payments, Pioneer Mortgage labeled such payment with          
          an "L".                                                                     
               As of 1990, over 2,000 persons (many of whom were elderly and          
          counted on their investments through Pioneer Mortgage to provide a          
          fixed income retirement) had made investments through Pioneer               
          Mortgage; the amount of these investments totaled approximately             
          $250 million.                                                               
          Petitioners’ Investments                                                    
               Petitioners invested in several fractionalized interests in            
          notes and deeds of trust through Pioneer Mortgage.  They also               
          invested in a CMO. The  following  is a list of petitioners’                
          investments with Pioneer Mortgage:                                          














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Last modified: May 25, 2011