- 10 - 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. AmongPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011