- 3 -
average of 20 hours per week (40 hours per week during the peak
retail periods) from 1985 through 1987 and more than 20 hours per
week from 1987 through 1989. He provided financial, sales, and
management services to JTFJ. From 1985 through 1989, JTFJ did
not compensate him for his services. During 1990 through 1995 he
worked for, and received wages from, American Laser Corporation,
California JAMAR, Inc., and JAMAR Industries. During 1991 and
1992, Larry Levy operated a consulting business, raising capital
for, but not advancing funds to, his client corporations.
II. The Note and The Agreement
On May 2, 1985, Robert Levy, as president of JTFJ, executed
a note (the note), which was secured by JTFJ’s assets but
subordinated to “all current or future financial obligations to
Republic Bank.” The security interest in JTFJ’s assets was not
perfected. Payment of principal and accrued interest was due on
or before May 1, 1988.
On May 2, 1985, Larry Levy, Robert Levy, and JTFJ, executed
the Joint Venture Agreement (the agreement) to provide cash-flow
for JTFJ. The agreement provided that Larry Levy make additional
advances to JTFJ, guarantee corporate debts, and deliver
professional services relating to JTFJ’s operations and
continuing capital needs. In exchange, he would receive a 50-
percent interest in JTFJ’s profits, which was payable at his
discretion, after the advances were repaid. Further, pursuant to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011