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1983. Notwithstanding the creation of INC, LTD's clients
continued to keep their accounts at United States Trust through
the end of 1983.
Jose Zollino, treasurer and a director of INC, and Raymundo
Leal, chairman of the board of directors of INC, moved to San
Antonio, Texas, in August 1983. By November 1983, INC had leased
space and opened an office in San Antonio. By the end of that
year, Mr. Zollino informed Mr. Fahey that INC's management wanted
to close the New York office and to have Mr. Fahey move to San
Antonio. Mr. Fahey agreed to move to San Antonio, arriving there
on January 15, 1984. Subsequently, LTD’s clients were
transferred from United States Trust to LTD. Prior to that time,
none of the United States Trust accounts had been transferred to
LTD. For its office, INC purchased an office copier, computer
equipment and software, and office equipment and furniture.
E. Structure and Operation of LTD's
Promotion, Service, and Sales
As conceived by LTD's founders, LTD's business was to
provide U.S. and foreign investment opportunities to InverMexico
clients. As a foreign (i.e., non-Mexican) financial institution,
however, LTD was restricted by Mexican law in the manner by which
it could advise clients in Mexico. Accordingly, LTD chose not to
establish a direct corporate presence in Mexico. When LTD was
first established, its clients were on the client roster of
InverMexico. Additionally, clients were referred to LTD by the
principals of InverMexico (including principals of InverMexico
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