Frank E. Acierno - Page 9

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          The $112,500 balance (including simple interest at 7 percent per            
          year) of each limited partner’s $150,000 total subscription fee             
          per partnership unit was deferred and was stated to be due in               
          approximately 15 years (namely, in 1994, 1995, and 1996).                   
               On the basis of the number of limited partnership units in             
          Drake that were sold, the investors in Drake owed Drake the                 
          following stated total amounts:                                             
                                                                                     
               Cash & Short-Term        Purported Recourse                            
               Debt Due In First        Long-Term Debt Obligations                    
               3 Years                  Due In 1994-1996                              
                  $13,616,000                   $40,849,000                           

               In spite of the large short- and long-term debt obligations            
          nominally associated with investments in Drake, no credit                   
          investigations were undertaken by Drake with regard to the                  
          creditworthiness of the limited partners who invested in Drake.             
               On December 29, 1981, petitioner subscribed to 10                      
          partnership units in Drake, and petitioner executed in connection           
          therewith one promissory note to Drake in the stated principal              
          amount of $12,500 due on April 15, 1982, and another promissory             
          note to Drake in the stated principal amount of $25,000 due on              
          December 15, 1983.                                                          
               Petitioner did not have any oil or gas experience, did not             
          conduct any outside investigation of any persons, entities, or              
          properties mentioned in Drake's offering memorandum, and did not            
          hire an expert to evaluate the investment.  Petitioner did not              




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