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Not all petitioner’s loans and advances to WMG were the subject
of promissory notes.
Medical Investment Corporation (Medicor)
In the early 1960s, petitioner formed a company called
Medical Investment Corp. (Medicor), which was in the business of
leasing medical equipment to doctors. Petitioner was the chief
executive officer of this company.
Medicor bought the Olmstead County Bank located in
Rochester, Minnesota. The purchase of the bank was financed with
a loan from the First National Bank of St. Paul. Petitioner
endorsed the note issued to First National Bank, which made him
liable as a principal. Petitioner began as the senior vice
president of the Olmstead County Bank, and he later became the
acting executive officer and chief loan officer.
In the early 1970s, Medicor changed its corporate purpose,
and it acquired the Shipstead and Johnson’s Ice Follies. It also
owned Northwest Sports Entertainment (Northwest) which, in turn,
owned the Western Hockey League franchise of the Vancouver
Canucks.12
In December 1970, Northwest purchased a $3 million
certificate of deposit from the Bank of the South Pacific and
Trust Co., Ltd. (South Pacific), a wholly owned Bahamian company
12In an annual report to the Securities and Exchange
Commission, Medicor reported owning 60.1 percent of the voting
securities of Northwest.
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