- 15 -
in M&L on September 20, 1990. He received a promissory note
stating that his interest would be $3,500 per month for 12 months
(84 percent per year).
On October 2, 1990, Mr. Norby again met with Mr. Krug and
asked additional questions about M&L's operations. He did not
know and Mr. Krug did not tell him that the M&L bankruptcy
petition had been filed on October 1, 1990. Mr. Norby was
satisfied with Mr. Krug's replies that M&L was doing fine and
invested an additional $10,000 on October 2, 1990. He received a
second promissory note stating that his interest would be $700
per month for 12 months (84 percent per year).
On October 11, 1990, Ms. Reyos told Mr. Norby that M&L had
filed the bankruptcy petition. He did not receive M&L's October
4, 1990, letter and did not know about it until he received the
October 30, 1990, letter. In view of his October 2, 1991,
conversation with Mr. Krug, Mr. Norby thought both letters looked
suspicious.
Mr. Norby spoke with Ms. Reyos approximately once a week
during the remainder of 1990 in an attempt to determine what
M&L's intentions were regarding its investors. He also spoke
with Mr. Joseph, M&L's president, several times during 1990 after
he learned that M&L had filed for bankruptcy. He did not find
the information he obtained from these conversations to be
positive.
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011