Morton Zuckerman - Page 3

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                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated and are so found.               
          The stipulation of facts and attached exhibits are incorporated             
          by this reference.  At the time the petition was filed,                     
          petitioner resided in Plainview, New York.                                  
               In 1985 petitioner was hired to conduct title closings for             
          East Coast Abstracts, Inc., a title abstract agency located in              
          Mineola, New York.  Petitioner worked as an independent                     
          contractor.  Steven Lieter (Lieter) and Stanley Levine (Levine)             
          were the agency's officers and shareholders.                                
               At some time during 1985, Lieter and Levine organized                  
          Consumer Equities Associates (CEA), a company whose business                
          initially was to broker first mortgage loans from Citibank.  At             
          petitioner's suggestion, in early 1986 CEA entered the business             
          of arranging second mortgages.  Acting on CEA's behalf,                     
          petitioner would secure funds from investors to finance second              
          mortgage loans for borrowers with a poor credit history.  An                
          investor's funds would be set aside in an interest-bearing                  
          account until CEA paid them to a borrower as a second mortgage              
          loan and assigned the loan to the investor.  In time the                    
          borrower's credit record would improve, thereby creating the                
          opportunity to refinance on a first mortgage basis, and the                 
          investor would be repaid.  Petitioner, Lieter, Levine, and                  
          Richard Cohen, the manager of CEA, each had signature authority             





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