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limited partnership with a described purpose of conducting
research and development involving the jojoba plant. Since Yuma
Mesa had raised only enough funds to plant jojoba on 130 acres of
the 160 acres owned by Hilltop Ventures, Cactus Wren was designed
to raise additional capital from investors to cover the cost of
planting jojoba on the remaining 30 acres owned by Hilltop
Ventures. As a result of his involvement with Yuma Mesa, Almand
volunteered to become the general partner of Cactus Wren. Almand
was engaged in business as a general contractor and had no
previous experience farming jojoba. Almand claims to have first
obtained information regarding investments in jojoba from the
principals of the Meinke firm.10
When Almand became general partner of Cactus Wren, he
already had invested in another limited partnership, Yuma Mesa,
discussed above. Almand's investment in Yuma Mesa was
approximately $100,000. As an investor in Yuma Mesa, Almand
visited the site of plantation I numerous times and spoke with
Don and Kelly Shooter, the farm managers employed by AI.
As general partner, Almand visited the site of plantation II
approximately six to eight times over a period of 4 to 5 years
and sent out four letters to the limited partners reporting on
10 Peterson, a member of the Meinke firm, testified that Almand
brought the information about investing in jojoba to the firm
after he attended a seminar on the subject. The precise
chronology of the investigation by Almand and the three members
of the accounting firm is immaterial.
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