Zahirudeen Premji and Carol M. Premji - Page 10

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          Tom Bird, also appeared to Mr. Premji to have made considerable             
          sums from their investments in M&L over a long period of time.              
               In July or August of 1990, Mr. Premji reviewed a book that             
          Mr. Brayer gave him explaining M&L's programs, finances, and the            
          equipment M&L claimed to sell.  Mr. Brayer told him that M&L was            
          soliciting investors to finance its purchase of used fax machines           
          for resale to a private company in Russia.  Mr. Premji understood           
          he could obtain a 10 percent return every 8 days (456 percent               
          annually) if he invested in M&L.  He did not speak with a                   
          representative of M&L.                                                      
               Based on newspaper reports of returns on real estate                   
          transactions in Central City, Colorado, and on his experiences              
          growing up in Tanzania, Africa, Mr. Premji thought there were               
          legitimate ways for an investor to receive an annual return of              
          456 percent.  He concluded that an investment in M&L would be a             
          reasonable investment.  Therefore, he invested a total of $58,000           
          in M&L as follows:                                                          
                    Date                          Amount                              
                    July 31, 1990                 $20,000                             
                    August 30, 1990              4,000                               
                    September 5, 1990             14,000                              
                    September 13, 1990            20,000                              
                                                  $58,000                             
          He gave Mr. Brayer cashier's checks for the amounts listed above            
          and Mr. Brayer delivered them to M&L.                                       
               During August 1990, Mr. Premji received four checks from M&L           
          in the amount of $2,000 each that represented promised interest             





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