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MCI. On July 20, 1988, A. Gelabert directed the Australia and
New Zealand Bank (ANZ Bank) to transfer $45,000 from the "Wayout
dividend account" to MCI’s account at MCI’s New Jersey bank. MCI
had several accounts at NCB. MDT transferred money to MCI
accounts, including a $100,000 transfer on April 12, 1988, and a
$127,000 transfer on September 15, 1988. MCI maintained an
insurance policy in its name.
In September 1988, Watson, on behalf of MCI, obtained a
letter of credit from ANZ Bank for $325,000. In December 1988,
Santandreu, A. Gelabert, Segui, P. Montaner, Kahne, and Climent
were elected to the board of directors of MCI. On March 20,
1989, A. Gelabert, as MCI president, signed a construction
contract to build the New Jersey castle. The New Jersey castle
was subsequently built with funds supplied by MDT. Various
contracts, invoices, and correspondence continued to use the name
MCI after March 20, 1989.
C. C&L Advice
In a letter to Santandreu dated August 31, 1988, C&L
responded to Santandreu’s questions about equity contributions to
MCI. The letter stated that MCI would be owned 87 percent by MDT
and 13 percent by minority shareholders. The letter further
stated:
Instead of discussing ways to make equity contributions
by respective shareholders, this letter discusses the
merits of operating new castles as divisions of MDT
rather than separate subsidiaries, at least until the
operation at each castle commences.
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