- 471 -
transaction if the value of its rights to the equipment at the
end of the leaseback or leasehold right of the leasing company
(96 or 108 months) had a value in excess of IRA's financial
investment, e.g., cash, short-term notes and long-term notes.
No individuals other than Mallin provided any substantive
information regarding the equipment leasing transactions entered
into by IRA throughout the years 1976 through 1986. Mallin
determined that IRA, as an investor, could make a profit on the
leasing transactions if the residual value of the equipment, on a
date 96 or 108 months after the purchase thereof, was in excess
of the cash originally invested by IRA.
Kanter had only general discussions with Mallin as to
whether to go into a particular deal. He did not discuss in
detail the economics of the equipment leasing transactions before
the transactions were consummated. He did not get involved in
detailed discussions regarding the residual value or economic
prospects of the equipment leasing transactions of IRA and
Cedilla Invest. Kanter never determined whether any computer
leasing transactions of IRA resulted in or could result in a
profit.
IRA did not obtain appraisals as to the values of equipment
to be purchased for any of the equipment leasing deals at issue.
There were no tax spreadsheets, forecasts, projections,
accounting letters, or appraisals presented by IRA to support its
Page: Previous 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 NextLast modified: May 25, 2011