Robert G. Leslie and Marilyn B. Leslie - Page 10

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          must be executed through an FCM which is a member of an exchange.           
          Since Hunter was not a member or clearing member of the Commodity           
          Exchange of New York (COMEX) or the International Money Market              
          (IMM), Hunter was not authorized to execute gold futures con-               
          tracts on the floor of either exchange.  Accordingly, Hunter                
          contracted with A.G. Becker, Inc., a clearing member of the                 
          exchanges, to execute and clear the gold futures transactions               
          involved herein.                                                            
               Hunter delivered promotional literature to prospective                 
          clients.  A majority of the promotional material was devoted to             
          showing clients the "significant tax advantages" they could                 
          obtain through the Hunter investment program.                               
               Most of the "Questions and Answers" portion of the Hunter              
          promotional material relates specifically to tax benefits that              
          can be received by participating in the Hunter program.  Specifi-           
          cally, the materials state:                                                 
               3.   Can I lose my investment?                                         
                    Yes. As with any investment, the risk of loss is                  
                    commensurate with the opportunities for profit.                   
                    However, the opportunity for profit can be con-                   
                    siderably enhanced, and the risk of loss substan-                 
                    tially reduced by the proper choice of alternative                
                    methods of liquidating your contracts.                            
                    *       *       *       *       *       *       *                 
               8.   How can the probability of gain be increased by                   
                    choice of liquidation methods (?) (See #3)                        

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