Zahirudeen Premji and Carol M. Premji - Page 16

                                       - 16 -                                         
               On or about December 27, 1990, Mr. Norby, accompanied by Mr.           
          Rittenhouse, reviewed M&L's bankruptcy file.  He did so because             
          he anticipated claiming a theft loss for his M&L investment on              
          his 1990 Federal income tax return, and he wanted to obtain                 
          documentation to support his claim.                                         
               Mr. Norby read and believed that the fraud allegations made            
          by the Colorado Securities Commissioner and RTC were true.  He              
          discovered that the Manns Haggerskjold loan commitment M&L                  
          professed to have secured in its October 30, 1990, letter to                
          investors did not exist.  He also reviewed the bankruptcy                   
          schedules.  Because of Mr. Krug's failure to tell him about M&L's           
          bankruptcy petition on October 2, 1990, and based on his                    
          understanding of the contents of the bankruptcy file, Mr. Norby             
          did not believe M&L's assets exceeded liabilities.  He concluded            
          that his investment would not be repaid.                                    
               Mr. Norby also learned from the bankruptcy file that Ms.               
          Jobin had been appointed trustee, but he did not contact her.  He           
          received two creditor's notices from Ms. Jobin and filed a proof            
          of claim in the bankruptcy proceeding on November 5, 1991.  He              
          did not file a claim in 1990 because he did not believe that                
          there would be assets remaining after secured creditors' claims             
          were satisfied.  He did not contact an attorney in 1990 or in               
          1991.  He was not involved in collateral suits to recover his M&L           
          investment.                                                                 






Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  Next

Last modified: May 25, 2011