- 13 -
We are not convinced by petitioner’s claim that he bought
ZZZZ Best stock in reliance on Minkow’s statements or the
documents Minkow sent to him. Although Minkow made fraudulent
misrepresentations about the receivables, petitioner did not rely
on them. Petitioner had reservations about the receivables and
did not buy them. Petitioner bought 60,000 shares of ZZZZ Best
stock in early April 1987 because, based on ZZZZ Best’s December
1986 public offering, publicity surrounding Minkow and ZZZZ Best,
and other institutions’ purchases of that stock, he thought it
was a good investment. He sold that stock for a profit of
$102,061.06 on April 15, 1987. Petitioner bought 50,000 shares
of ZZZZ Best stock from June 1 to June 4, 1987, and 20,000 shares
on June 16, 1987, also because he thought it would be a good
investment.
Petitioner bought all 130,000 shares of ZZZZ Best stock at
issue here before Minkow telefaxed various documents to him on
June 16, 1987. Although Minkow talked frequently to petitioner
on the phone from late April to mid-June 1987, he was trying to
persuade petitioner to buy receivables, not stock. Minkow told
petitioner that ZZZZ Best’s stock was one of the best NASDAQ
stocks after petitioner bought and sold 60,000 shares of it in
early April 1987. Petitioner decided to buy ZZZZ Best stock
based on his knowledge of ZZZZ Best’s public offering, the active
trading of ZZZZ Best stock, and Minkow’s reputation as an
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011