Inverworld, Inc., et al. - Page 87

                                                 - 17 -                                                   
            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                                



Page:  Previous  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  Next

Last modified: May 25, 2011