- 16 - F. Woolf In 1965, Woolf started a construction equipment company called Ditch Witch of Minnesota (Ditch Witch). Ditch Witch sold heavy equipment for underground construction such as boring, trenching, hauling, backhoe and related components. Describing his business career Woolf said he started Ditch Witch “from nothing, and built it to a very successful business.” In the early 1980’s, Ditch Witch had annual gross receipts of $1,500,000 to $2,500,000. Prior to 1982, Woolf had made only modest investments in securities. He did invest in a bowling alley with four other individuals, but Woolf decided “it looked like a Mickey Mouse deal” and sold his interest for a long-term capital gain of more than $25,000 in 1979. Although Schluter brought other proposals to his attention, Woolf preferred to invest his capital in Ditch Witch. He did invest individually in rental properties throughout Minnesota, but these were mostly shop facilities that he owned and rented to Ditch Witch. Also, Woolf sold 30 percent of Ditch Witch to employees through an ESOP. Ditch Witch also had a target pension plan, in which Woolf participated. At the time of trial, Woolf still owned 30 to 40 percent of Ditch Witch and had sold or otherwise transferred the rest to his son-in-law.Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: May 25, 2011