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would own the remaining 1 percent. Pursuant to the offering
memorandum, each limited partner was required to have a net worth
(including residence and personal property) in excess of $1
million, or net income in excess of $200,000, for each investment
unit.
The offering memorandum stated that Dickinson would pay
“fees of purchaser representatives and selling commissions” from
the proceeds of the offering in an amount equal to 10 percent of
the aggregate price of the units.
The offering memorandum also stated that Dickinson could pay
professional fees to “Fred Gordon, Esq., Special Counsel to the
General Partner”, in an amount equal to 5 percent of the
aggregate price of the units. Gordon provided legal services to
the partnership for which he was compensated.
The face of the offering memorandum warned, in bold capital
letters, that “THIS OFFERING INVOLVES A HIGH DEGREE OF RISK”.
The offering memorandum also warned that “An investment in the
partnership involves a high degree of business and tax risks and
should, therefore, be considered only by persons who have a
substantial net worth and substantial present and anticipated
income and who can afford to lose all of their cash investment
and all or a portion of their anticipated tax benefits.” The
offering memorandum went on to enumerate significant business and
tax risks associated with an investment in Dickinson. Among
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Last modified: May 25, 2011