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needs, gave some general financial advice, and then recommended
that petitioners invest in a jojoba research and development
limited partnership. He showed petitioner some pamphlets and
some cosmetic products.
Desmond initially offered petitioners an investment in an
entity called "New Jersey Agri 83-1" (New Jersey Agri), whose
stated intent was to grow jojoba for use as a renewable source of
"oils, pharmaceuticals," and cosmetics. Petitioner does not
remember receiving a private placement memorandum. Desmond did
provide him with certain documents to show him "that this
investment was valid". He was shown copies of "Bills from
Congress, articles of $50 million investment into jojoba, U.S.
Department of Agriculture." After 1983, petitioner received some
newsletters from "people with Ph. D.'s". Petitioner introduced
into evidence copies of the items of "literature" he said were
given to him by Desmond in 1983; all are dated 1984 or later.
From talking with Desmond, petitioner believes that the
actual land for the jojoba cultivation was in Blythe, Arizona.
Although he did not receive any documentation with respect to his
proposed investment in New Jersey Agri, he was told that the
farming, research, and development to make jojoba plants grow
better was going to be done by an entity called "U.S. Agri"
headed by a Mr. Pace. He was advised that he would only be at
risk for his cash investment of $5,500.
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Last modified: May 25, 2011