- 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 NextLast modified: May 25, 2011