Zahirudeen Premji and Carol M. Premji - Page 9

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          investors to recover assets.6  She filed additional proceedings             
          in September 1993.                                                          
               At the time Ms. Jobin filed the adversary proceedings                  
          against M&L's investors in 1992, there was little case law on               
          point within the jurisdiction of the United States Court of                 
          Appeals for the 10th Circuit.  Nonetheless, by June 1995, she had           
          collected approximately $8.5 million for the bankruptcy estate.             
          She anticipated collecting a total of $14 million at the                    
          conclusion of all proceedings.  Ms. Jobin estimated that                    
          unsecured creditors would recover approximately 30 percent of               
          their claims and that distributions to unsecured creditors would            
          probably be made by the end of 1996.                                        
          Petitioners Zahirudeen and Carol M. Premji                                  
               The Premjis are husband and wife who filed a joint Federal             
          income tax return for the year 1990 on which they reported a                
          theft loss of $58,000 from their investment in M&L.                         
               Mr. Premji has a degree in mechanical engineering and is a             
          systems engineer.  He is not an accountant or financial analyst.            
               Mr. Premji learned about M&L from Scott Brayer, a friend of            
          a neighbor.  He knew that Mr. Brayer had invested in M&L for                
          several years and thought his lifestyle supported his claimed M&L           
          earnings.  Several other individuals, including Karen Marx and              

          6  Ms. Jobin was delayed in filing these proceedings because                
          M&L's records had been removed from its offices.  The records               
          were recovered pursuant to a search warrant and made available to           
          her in July 1992.                                                           




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