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Blythe Jojoba II Research, Ltd. (Blythe Jojoba II); and Desert
Center Jojoba Research, Ltd. (Desert Center Jojoba). Each of
these partnerships was similar, if not identical, to San Nicholas
Research, Ltd., described infra in “C” through “F”.
Prior to 1982, Mr. Kellen did not have any experience in
growing jojoba, nor did he have any experience in either the
research or development of jojoba. Prior to 1982, Mr. Kellen’s
knowledge concerning jojoba was limited to articles that he had
read in various magazines and a general familiarity with the
existence of an experimental jojoba plantation located at the
University of California at Riverside.
In 1983, Mr. Kellen was actively engaged in the practice of
law, specializing in the formation of financial institutions such
as banks, savings and loan associations, and thrift and loan
associations. Mr. Kellen did not have any expertise in
accounting or tax matters, nor did he ever attempt to render
advice on those subjects.
C. Petitioner’s Investment in San Nicholas Research, Ltd.
Petitioner was introduced to jojoba in the fall of 1983 by
Mr. Kellen, who provided petitioner with a copy of a private
placement memorandum dated October 10, 1983 (see infra “D” and
“F”) for San Nicholas Research, Ltd. (San Nicholas or the
partnership). Thereafter, on December 29, 1983, petitioner
signed a subscription agreement and purchased 10 limited
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