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Here Michael did not even hire Mr. Blankstein until after
decedent’s death, strengthening the inference that the partners
had little concern for establishing any precise demarcation
between partnership and other funds during decedent’s life.
Closely related to the delay in opening the partnership bank
account and consequent commingling of income is the delay in
formally transferring the underlying portfolio assets to HFLP.
No attempt was made to begin the process of title transfer until
July 26, 1994, when decedent executed an allonge endorsement
assigning the Marsh note to HFLP. No action was taken with
respect to any of the other securities until September 29 and 30,
1994, when letters addressing transfer of the M.L. Stern & Co.,
Putnam, and Franklin accounts were drafted and an account with
M.L. Stern & Co. was opened on behalf of HFLP. A letter
requesting transfer of the Rockefeller Center Properties stock
was not prepared until November 22, 1994.
When Michael was asked on cross-examination to explain this
delay between the effective date of the partnership and the
formal transfer of assets into the entity, he replied: “Probably
for different reasons, some mechanical delays and who we’re
dealing with, but generally, there was no rush to do it. We were
just doing it in an orderly fashion.” Next, in response to a
further question asking why there was no rush, he continued:
“There was no rush. I mean, we were just handling the business
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