Inverworld, Inc., et al. - Page 181

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            Journal's 30-day Jumbo CD report.  Because the funds were pooled,                             
            LTD purchased the certificate of deposit in its own name pursuant                             
            to its authority to act as attorney in fact for each client in an                             
            omnibus account.  Initially, when the interest was remitted to                                
            the client clearing account, a credit would be entered on each                                
            client's account.  Later, LTD changed its policy to credit each                               
            client's account monthly, even though LTD had yet to receive any                              
            interest income.                                                                              
                  Finally, for amounts less than $10,000, and in increments of                            
            $100, a client’s funds were left on deposit in LTD’s client                                   
            clearing account, and the client’s account was credited with the                              
            average rate paid by Frost Bank on the average balances for any                               
            particular period.  LTD called such account the "Money Market                                 
            Account" (MMA).  LTD represented MMA to its clients as demand                                 
            deposits in a portfolio comprising money market instruments. MMA,                             
            however, was merely a marketing name for the investment mechanism                             
            that we have described supra.  INC performed a daily accounting                               
            of each client’s investments.  If a client had funds of less than                             
            $10,000 in an LTD account, INC placed the client’s funds into the                             
            MMA in $100 increments.  Any funds of a client below $100 were                                
            not so invested.                                                                              
                  LTD derived three types of income from using the funds in                               
            the client clearing account to invest in U.S. certificates of                                 
            deposit and U.S. bank deposits.  The first type of income earned                              






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