-17- government road construction contracts. Both petitioner and Ms. Jackson’s father had substantial experience in road construction. Ms. Jackson kept petitioner’s involvement with Cities and its projects confidential. Petitioner’s anonymity was likely connected to Cities' ability to maintain its preferred status as a minority or woman owned and operated business enterprise. As a result, the documentation of Ms. Jackson’s and petitioner’s relationship is somewhat terse. For example, there are notes and some agreements that seem to characterize petitioner as a creditor. One document reflects a loan of $90,000 and provides for the repayment of $100,000. That note reflects interest to petitioner in a discounted form for the use of his money. Overall, notes exist for about one-third of the total amount advanced by petitioner. In addition, no Cities stock was issued in petitioner’s name. The few informal documents contain references to petitioner, either as a silent partner or a partner with a 50-percent share of profits from the government construction contracts. Although Cities was the entity to which the road contracts were awarded, in their agreements Ms. Jackson and petitioner treated as their own any profits from such contracts. As part of petitioner’s involvement in the road contracting, petitioner was provided with title to Cities’ machinery, and he, in turn, leased the machinery to Cities in exchange for rentPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011