Woody F. Lemons - Page 16

                                       - 16 -                                         
             memberships in the club.  They directed their marketing                  
             efforts toward individuals who were the principals of                    
             "small to medium-size Texas corporations that were                       
             expanding their business activities into the Southern                    
             California area."  Mr. Dixon and petitioner caused the                   
             promotional booklet described above to be prepared, and                  
             they drew up a list of prospective buyers.  They sent                    
             letters and copies of the promotional booklet to the                     
             prospective buyers on the list, and shortly thereafter                   
             they made followup contacts with those persons.                          
                  During the period from May or June of 1985 through the              
             end of that year, Mr. Dixon, petitioner, and Mr. Armstrong               
             encouraged a number of prospective buyers to fly from Texas              
             to Southern California to visit the project.  Vernon paid                
             for their airfare to California, and the joint venture paid              
             for their expenses in California.  An individual who was                 
             employed by the club to manage the project, Mr. Michael                  
             Osuna, was responsible for attending to the needs of the                 
             prospective buyers while they were staying at the project.               
                  On September 19, 1985, the joint venture transferred                
             to the beach club the portion of the Moonlight Beach                     
             Property which included the six condominium units.  The                  
             deed for the transfer was recorded by the club on                        
             December 3, 1985.  The club took title to the Moonlight                  






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