Investment Research Associates - Page 289




                                       - 353 -                                         
          Baskes was there for the purpose of explaining the process                   
          involved in raising funds for the sale of limited partnerships.              
          From January of 1965 to May of 1978, Baskes was a partner in LK.             
               On September 1, 1973, LK formed a partnership known as                  
          Oyster Bay Associates (OBA).  The partners of OBA included                   
          members of LK, or entities owned by themselves or members of                 
          their families.  Each LK partner or his family entity that became            
          a partner of OBA shared in the profits and losses of OBA in the              
          same percentage that such partner shared in the profits and                  
          losses of LK.  The partners of OBA contributed total capital to              
          OBA of $100,000.  The partners of OBA received back distributions            
          in excess of their capital contributions during 1974.                        
               Kanter chose to participate in OBA.  He could have                      
          participated personally in OBA but designated BRT to participate             
          in OBA up to his 18 percent interest in LK.                                  
               On the same day that OBA was formed, September 1, 1973, an              
          Illinois general partnership, Long Island Cable Communications               
          Development Co. (Long Island Cable), was formed.  The partners of            
          Long Island Cable included "class A" partners and one "class B"              
          partner, OBA.                                                                
               The Long Island Cable partnership agreement recited that the            
          purpose of Long Island Cable was to negotiate for the purchase of            
          certain existing franchise rights and equipment collectively                 
          constituting a cable television system in Nassau County, New                 






Page:  Previous  343  344  345  346  347  348  349  350  351  352  353  354  355  356  357  358  359  360  361  362  Next

Last modified: May 25, 2011