- 4 - over the CEA account at the Mineola branch of Citibank, account No. 23429344. In March or April 1986, Lieter and Levine became aware of financial irregularities at CEA. Checks were missing, and petitioner failed to provide satisfactory documentation of his activities. They responded by revoking his independent authority over the CEA bank account: henceforth petitioner would not be permitted to write checks on the account without the signature of one of the other three signatories. CEA began to receive complaints from individuals claiming that they had invested in second mortgages through petitioner's solicitations yet had not received interest payments or mortgage documentation. In most cases Lieter and Levine were unable to locate any records of the alleged transactions. In late May or early June 1986, petitioner's relationship with CEA and East Coast Abstracts was terminated. Mildred Lawrence (Lawrence) was one of the numerous individuals who believed they had invested in second mortgages through CEA. Petitioner and his wife were close friends of the Lawrences. Shortly before his work for CEA began, petitioner informed Lawrence of the investment opportunities he would be handling and offered to select some safe mortgages for her. Between April and July 1986, she gave him three checks payable to CEA in the aggregate amount of $65,000. Petitioner represented to her that each of the checks would be used to acquire anPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011