- 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 NextLast modified: May 25, 2011