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limited to the, information relating to management,
operations, financial affairs, legal affairs, * * *
bids, contracts, licensing and investment
opportunities, acquisition and joint venture
candidates, business plans, and business opportunities.
* * * * * * *
9. This Agreement sets forth all terms and conditions
of the agreement between the parties. The parties
understand and agree that the terms of this Agreement
are contractual and not a mere recital. * * *
During his employment with CMS, petitioner was instrumental
in the development of a relationship between CMS and Signet Bank
(Signet). Petitioner introduced CMS executives to an "old pal"
of his at Signet and ultimately CMS and the bank formed a
business relationship. Signet provided the necessary "credit
facility" that allowed CMS to contract with the Department of
Housing and Urban Development (HUD). A "credit facility" is
similar to a revolving line of credit. The credit facility in
place between Signet and CMS during the relevant period could
only be used by CMS in connection with its contract with HUD.
In May 1990, CMS was attempting to secure a contract with
the Government National Mortgage Association (GNMA). Apparently
to qualify for the contract CMS had to demonstrate certain
financial responsibility. In a May 4, 1990, letter to GNMA (the
GNMA letter) that included a business plan and proposal, CMS
represented:
Currently, CMS has a $300,000 credit facility that can
be utilized for advances necessary to meet monthly
remittance requirements. The credit facility can be
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Last modified: May 25, 2011