- 5 -
and told him that if the Pewitts wished to make such an investment,
they should jointly meet with him.
At the second meeting, Mr. Colwill discussed with Mr. and Mrs.
Pewitt the risks and rewards of an investment in Media Marketers,
including tax ramifications. Mr. Colwill gave the Pewitts a
prospectus; both Mr. and Mrs. Pewitt "looked" at the prospectus but
did not understand its content. As Mr. Pewitt testified: "It was
way over our heads at that point."
Mr. and Mrs. Pewitt jointly became limited partners of Media
Marketers in 1983 and partners of Assured Communications in 1984.
(Although the record is scant with respect to Assured
Communications, it appears that petitioners' investment in that
partnership was made through Mr. Colwill, who followed the same
procedures with regard to Mr. and Mrs. Pewitts' investment in
Assured Communications as he had done with their investment in
Media Marketers.)
Mrs. Pewitt signed the initial investment documents relating
to both Media Marketers and Assured Communications. She was listed
on the Forms K-1 issued by the partnerships as a partner.
Subsequent to petitioners' divorce in 1987, and prior to the filing
of the petition in this case, she wrote Mr. Colwill requesting
then-current information about Media Marketers and Assured
Communications.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011