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services for LTD and maintained the account records of LTD's
clients. United States Trust charged commissions directly
against each individual account on a sliding scale with the
highest charge being approximately 0.75 percent of a client’s net
assets. For their equity investments, LTD clients used the
investment management services of Paine Webber and Shearson.
Generally, Shearson charged commissions directly against an LTD
client’s account. Shearson then compensated either LTD or
InverMexico by paying a percentage of the fees or commissions
that Shearson earned from managing LTD clients' portfolios.
After 1 year of working with United States Trust, LTD’s
principals concluded that the service provided by United States
Trust did not meet their expectations and that LTD was losing fee
revenue and possibly clients to United States Trust. The
executive committee of the Inver Group decided to create another
related company that would perform the research, bookkeeping, and
administrative services formerly provided by United States Trust.
On December 22, 1982, INC was incorporated pursuant to the laws
of the State of Delaware for that purpose.
The original INC office was established in New York City by
George Fahey, president and a director of INC. Mr. Fahey leased
a small space at Rockefeller Center during early 1983. INC’s
office personnel consisted of Mr. Fahey and a secretary. Mr.
Fahey maintained that office through the end of calendar year
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